Halifax’s latest house price index found that the average property price is now £298,237 compared to £297,157 last month, but warned prices would come down
UK homeowners have been greeted with the encouraging news that house prices increased by 0.4 per cent last month. This surge is “larger than expected,” however, experts caution that they will eventually decrease.
Halifax reports that the 0.4 per cent increase is the greatest since the beginning of the year, while the annual rate of price growth was +2.4 per cent, compared to +2.7 per cent in June.
The lender states that the average property price is now £298,237, up from £297,157 the previous month. It comes after news that Nationwide will pay bonus £760 into accounts of customers who do one thing.
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Amanda Bryden, Halifax Head of Mortgages, reminded buyers that “it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type.” She further noted that “challenges remain” for those aspiring to ascend or enter the property ladder, reports Birmingham Live.
She said: “With mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving”. He added that “combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well”.
Chris Barry, director at London’s Thomas Legal, commented: “While July’s property price rise is larger than expected, it still sits within the manicured landscape of ‘healthy’, given that wage growth continues to outpace. This data is a national picture and regionally you can find huge disparity”.
Mr Barry shared that “in London, house prices have remained fairly static for most of 2025 with the outlook poised to reduce over the second half of the year”. Speaking for Thomas Legal, he said: “We believe house prices generally will start to come down given that completion data is lagging and the new transactions currently being agreed are on the decline”.
Katy Eatenton, Mortgage and Protection Specialist at Lifetime Wealth Management, saod: “Just like the Nationwide last week, the Halifax has observed that affordability is improving, and it is. There has been a lot of lender innovation this year and more first-time buyers are now able to get on the property ladder”.
She concluded: “Prices continue to defy wider economic conditions, but then that has traditionally been the case with bricks and mortar. Hopefully we get a midday boost with an interest rate cut, which will further stimulate the market”.