Average UK house price jumps by more than £2,200 in a month

The average UK house price was more than £2,200 higher in July than it was in June, following three relatively flat months, according to an index.

Halifax said house prices increased by 0.8% month on month and by 2.3% annually.

Across the UK, the average house price in July was £291,268, up from £289,042 in June.

Amanda Bryden, head of mortgages, 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.

Holly Tomlinson, a financial planner at wealth manager Quilter, said “a feeling that rates are going in the right direction” will help people decide to take the leap back into the market.

She said: “Those on the fence about selling their home may also feel the time is now right.

“The autumn may therefore prove to be busier than anticipated.”

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “It is extremely positive to see further growth within the housing sector, especially following what has been a tough time across the last few years for consumers.

“Assuming the economy remains stable in September, it would be good to see the central bank continue to gradually cut interest rates as conditions permit.”

Matt Thompson, head of sales at London-based estate agent Chestertons, suggested the introduction of sub-4% mortgage rates by lenders has helped boost buyer confidence.

Purplebricks chief executive Sam Mitchell said: “The growing confidence we’ve seen take hold of the housing market in recent weeks has been supercharged by the Bank of England’s interest rate cut.

“With lenders already slashing mortgage rates in response to last week’s decision, buyers are beginning to move ahead with purchasing decisions they have been putting off for months.”

Here are average house prices and the annual change, according to Halifax. Regional annual change figures are based on the most recent three months of approved mortgage transaction data:

East Midlands, £239,448, 0.6%

Eastern England, £330,282 minus 0.4%

London, £536,052, 1.2%

North East, £171,663, 2.6%

North West, £232,489, 4.1%

Northern Ireland, £195,681, 5.8%

Scotland, £205,264, 2.1%

South East, £386,468, 1.3%

South West, £301,359, 1.1%

Wales, £221,102, 3.4%

West Midlands, £253,649, 1.8%

Yorkshire and the Humber, £206,480, 1.8%