UK house prices flat in July, says Lloyds, as buyers struggle with affordability

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.