Halifax has reported that UK house prices rose in July, following three relatively flat months.

House prices increased by +0.8% in July and the annual growth rate of +2.3% is the highest since January 2024.

A typical property now costs £291,268, up from £289,042 in June.

On a regional basis, Northern Ireland continues to record the strongest annual house price growth in the UK.

Amanda Bryden, head of mortgages at Halifax, said: “In July, UK house prices increased by +0.8% on a monthly basis, following three relatively flat months. The average house price in the UK is £291,268, up over £2,200 compared to the previous month.

“Annual growth rose to +2.3%, the highest rate since the start of this year.

“Last week’s Bank of England Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder. However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.

“Against the backdrop of lower mortgage rates and potential further Base Rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Affordability has long been an issue for borrowers with higher mortgage rates taking their toll and impacting what buyers are prepared to pay.

“However, there is good news for borrowers with lenders continuing to cut mortgage rates for home movers. With NatWest reducing its five-year fixed-rate mortgages to 3.97% this week, closely followed by HSBC with a 3.95% deal, the lending landscape is improving as rates gently edge downwards.

“Borrowers are also hopeful that the Bank of England will also make further rate cuts before the end of the year, further easing affordability constraints.”