House price growth slowed in July, according to official figures

House price growth slowed in July.

The average house price grew by 2.8% in the 12 months to July, down from 3.6% growth in the year to June, according to figures from the Office for National Statistics (ONS)

In June and July prices increased by 0.3%, down 1.1% on the same period a year ago.

Private-sector rental growth slowed to 5.7% in the 12 months to August from 5.9% in July, the ONS added, and the smallest annual increase since December 2022.

Richard Donnell, executive director at Zoopla, said: “Rents and house prices are slowing across the UK as housing demand cools and affordability pressures bite on what people can pay for rent and mortgages.

“This has big implications for home building where weaker demand is holding back investment in growing supply. The government needs to either support demand or remove the impediments to getting more home built.”

The slowdown has been attributed by some to uncertainty ahead of the budget in November, when the government is expected to increase taxes.

Jean Jameson, chief sales officer at Foxtons, said: “Buyer demand has been boosted by improved mortgage lending with higher loan to income multiple products on offer, as well as the fact mortgage rates are lower compared to this time last year. Nevertheless, there understandably remains some uncertainty ahead of the Autumn Budget. Overall, house prices have grown over the last 12 months, and where properties are priced pragmatically, they are still attracting interest and selling quickly.”

Jonathan Hopper, CEO of Garrington Property Finders, said: “On the property front line, we are seeing a two-speed market emerge. Those who need to move are pressing ahead but negotiating hard to de-risk themselves from potential tax changes in the November Budget, while discretionary movers are adopting a wait-and-see stance, using the uncertainty as an excuse to pause.