House prices rise at fastest monthly rate for six months but London market remains sluggish

House price have risen at their fastest rate on a month-on-month basis for six months.

Figures released today by Halifax show prices rose by 0.4 per cent in July compared to June.

However, prices increased by 2.4% compared to the same month in 2024, which is the slowest rate of annual growth for a year.

Amanda Bryden, Head of Mortgages, Halifax, said: “Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.

“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. We expect house prices to follow a steady path of modest gains through the rest of the year.”

Matt Thompson, head of sales at estate agent Chestertons, said: “Many house hunters feel that the property market now provides a window of opportunity as more properties are up for sale. Last month, some of our branches registered an evident uplift in the number of vendors wanting to sell which has motivated more buyers to resume their search and make an offer”

The figures show the highest annual increases were in Northern Ireland (9.3% over the past year), Scotland (4.7%) and Wales (2.7%).

London and the south east continues to see much slower annual growth at 0.2% and 0.5% respectively.

Joe Nellis is economic adviser at consultancy MHA, said: “Many properties in London, particularly inner London, are actually losing value. Families looking to invest in their first owned property are being forced out of the city by high property prices and the seemingly ever-increasing cost of living. “Add to this the removal of stamp duty relief for first-time buyers from April this year and it is no surprise that demand for properties in the capital is declining, leaving sellers struggling to find buyers and prices beginning to show signs of falling.”

The figures come ahead of an expected cut to Bank of England interest rates later today.