House price growth slows in July

Official figures show that house prices increased by 2.8% in the year to July, marking a slowdown on the 3.6% recorded in June. Office for National Statistics data shows that average property prices in England were up 2.7% year-on-year, hitting £292,000. The typical price rose 2% to £209,000 in Wales, while a 3.3% increase took the average in Scotland to £192,000. Meanwhile, average UK rents increased 5.7% to £1,348 per month in August, with slower rises across all regions. Experts attribute the cooling housing market to weaker demand, high mortgage costs, and inflation pressures. Danni Hewson, head of financial analysis at AJ Bell, noted that "markets are hedging their bets on the potential for one final interest rate cut in 2025," with this expected to dampen activity in the housing market as mortgages remain higher. Looking across 317 local authorities in England and Wales shows that 9.1% of homes were affordable to those who worked there in 2024. The most affordable local authority in London was Tower Hamlets, with a ratio of 9.4; all other areas in London had ratios of 12 or higher, with Kensington and Chelsea the highest at 35.5.

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