Annual UK house price growth slowed to its weakest rate since November 2023 in July as property values remained broadly unchanged during the month, according to the Lloyds House Price Index.
Average prices were 0.1% higher than a year earlier, according to Lloyds, while monthly growth was flat following a 0.2% increase in June.
The average property price stood at £299,253, down £143 from £299,396 in June.
According to Lloyds, average house prices have remained relatively stable for almost two years and are just 0.5% higher than in November 2024.
Amanda Bryden, head of mortgages at Lloyds, said affordability remained a challenge, while mortgage rates had started to edge higher again following recent events in the Middle East after easing earlier in the summer.
She added: “Sensitivity to borrowing costs is reflected in the latest industry data, which show a modest increase in both mortgage approvals and completed transactions in June, following a bigger dip in May.
“While housing demand remains broadly steady, activity continues to respond quickly to changes in mortgage rates.”
There remained significant differences in house price performance across the UK.
Northern Ireland recorded the strongest annual growth at 7.4%, taking its average property price to £231,131.
Prices in Scotland increased 3.6% year-on-year to £223,246, while Wales recorded growth of 1.6% to an average £231,458.
In England, the strongest increases continued to be recorded in northern regions. Prices in the North East rose 2.8% annually to £182,488, while the North West recorded growth of 2.1% to £247,836.
Southern England remained weaker, with average prices in the South East falling 2% year-on-year to £381,146, while Greater London recorded a 1.3% annual decline, taking the average to £533,930.
Bryden said Lloyds expected house prices and market activity to remain relatively stable over the remainder of the year, with the outlook dependent on mortgage rates, inflation and household confidence.
