Annual house price inflation has climbed to 3.7% in June from 2.7% in May, bringing the average to \u00a3269,000, the government\u2019s UK House Price Index has found.<\/p>\n
The average monthly rate of house price growth in June was 1.4%.<\/p>\n
Iain McKenzie, CEO of The Guild of Property Professionals, said: \u201cThis isn\u2019t a fleeting spike; it\u2019s a recovery built on stabilising foundations.<\/p>\n
\u201cThe key driver has been the continued improvement in mortgage rates. With some lenders now offering sub-4% deals and swap rates suggesting further falls are possible, buyers are benefiting from improved affordability.<\/p>\n
\u201cCrucially, when combined with strong earnings growth, the proportion of household income needed for mortgage payments is now almost back to its long-term average.<\/p>\n
\u201cThis has been the missing piece of the puzzle, unlocking pent-up demand that has been waiting on the sidelines.\u201d<\/p>\n
The Bank of England cut the base rate from 4.25% to 4% on the 7 August, which should also bring life to the market.<\/p>\n
Buyer demand and agreed sales are both up on last year, and with transaction volumes on track to hit 1.1 million in 2025.<\/p>\n
The North East (7.8%) is the fastest growing region of the UK, followed by Scotland (5.9%) and Northern Ireland (5.5%).<\/p>\n<\/p>\n
The slowest growing region is London (0.8%), the South West (1.5%), and Wales (2.6%).<\/p>\n
Jonathan Hopper, chief executive of Garrington Property Finders, said: \u201cAfter slowing sharply following the end of the Stamp Duty sugar rush, house price inflation is back with a bang.<\/p>\n
\u201cEye-catching though it is, the jump in the national rate of inflation \u2013 up by a full percentage point between May and June \u2013 should be taken with a healthy pinch of salt.\u201d<\/p>\n
He added: \u201cPrice rises are modest in much of southern England too, and on the front line we\u2019re seeing lots of high-value homes coming onto the market in sought-after areas. The surfeit of stock is putting buyers firmly in the driving seat and giving them the confidence and clout to negotiate hard on price.<\/p>\n
\u201cWith the UK economy performing better than many had expected and mortgage interest rates inching lower following the Bank of England\u2019s decision to cut the base rate, buyer sentiment is strong.<\/p>\n
\u201cWith so many homes to choose from, the dynamic between sellers and buyers is beginning to look less like a tug-of-war and more like a cautious handshake. Affordability is still a hurdle in the south, but where prices have adjusted, buyers are engaging and deals are being struck.<\/p>\n
\u201cThis shift is telling us something important about buyer priorities. Families and upsizers are re-entering the market, while demand for flats remains subdued. It reflects not only changing housing needs. but also the impact of borrowing costs on entry-level buyers and investors.<\/p>\n
Since April 2024 property transactions decreased by 15.0% in England, decreased by 0.6% in Scotland and increased by 49.1% in Wales. Northern Ireland\u2019s UK HPI volume transactions decreased by 11.3% in the year to Quarter 2 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"
Annual house price inflation has climbed to 3.7% in June from 2.7% in May, bringing the average to \u00a3269,000, the government\u2019s UK House Price Index has found. The average monthly rate of house price growth in June was 1.4%. Iain McKenzie, CEO of The Guild of Property Professionals, said: \u201cThis isn\u2019t a fleeting spike; it\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":2827,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n