UK house prices were broadly unchanged in July, according to Lloyds, as higher mortgage rates and uncertainty linked to Middle East tensions continued to strain buyers’ affordability. The figures suggest a housing market in relative stasis rather than crisis, with demand steady but activity highly sensitive to borrowing costs and household confidence.

The average home cost £299,253, down £143 from June and only 0.1% higher than a year earlier, the weakest annual growth since November 2023. Average two- and five-year fixed mortgage rates had risen to 5.63% and 5.67% respectively, while Northern Ireland saw annual price growth of 7.4%; prices fell 2% in the south-east and 1.3% in Greater London.