The latest house price reports show another quite flat month with a slant towards the upside.

Nationwide’s Report states a slightly national increase, both monthly and annually.

Robert Garnder, Nationwide’s Chief Economist said:

 “UK house prices edged up by 0.2% in June, after taking account of seasonal effects. This resulted in the annual rate of growth rising from 1.3% in May to 1.5% in June, leaving prices around 3% below the all-time high recorded in the summer of 2022”.

It goes on to say that “housing market activity remains fairly subdued” and mentions higher mortgage rates a key factor.

However, the latest Halifax Report stated a monthly fall in prices of -0.2%, but commented on the annual increase which it puts at +1.6%.

Amanda Bryden, Head of Mortgages at the Halifax said:

“UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms. On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at £288,455

She went on to say –

“This continued stability in house prices – rising by just +0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering. For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices. 

“Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. 

The Rightmove Report for June, which focuses on asking prices, reported a drop, albeit by a small amount.

It stated –

“The average price of property coming to the market for sale drops by just £21 this month (0.0%) to £375,110 after reaching a record high in May, as prices in June follow their familiar seasonal pattern of recent years and remain flat”

However, the latest Rightmove Report states a reduction in prices of 0.4%, reducing the average price to £373,493. 

The report in Mortgage Strategy stated “This decline is larger than the typical July decrease as new sellers aim to capture buyer attention amid the distractions of the General Election, summer holidays, and major sporting events.”

North / South Divide

The Rightmove Report goes on to say –

“Less expensive and more northerly regions are seeing stronger price growth this month, with five of the six cheapest regions reaching new price records while the higher-priced East of England and London lag behind”

This is backed up by the latest Hometrack Report  and the latest Zoopla Report which states that house price inflation was flat at 0%. 

With these reports showing a breakdown by region, it shows that generally, the North continues to experience price rises whereas the South continues to see declines.

The Zoopla report goes on to state that, “The average UK house price is set to rise by 1.5% by the end of the year”.

Our Thoughts

It does feel that activity levels in the purchase market may be slightly subdued compared to previous months.

Taking into account the Election and a peak in mortgage rates as we head into Summer Holiday season, this makes sense.

The good news is that mortgage rates have slightly reduced over the last couple of weeks and hopefully we will see the Bank of England Base Rate reduce at some point in the near future.

If house prices remain resilient and rates start to fall, we may see activity increase which will no doubt have an impact on prices.