UK house prices jump in July

house building construction site

UK house prices jump in July to record highs, say the Halifax House Price Index.  Average prices are now the highest recorded.

What are the numbers?

According to the Index;

  • The average house price is now £241,604
  • Increase of 3.8% over the past year

This means that the price increase in July has replaced the earlier losses in 2020.

Why is this happening?

So, UK house prices have increased in July.  It appears that the end of the Lockdown restrictions has released a mini wave of house buying and selling.

According to Russell Galley of the Halifax;

“As pent-up demand from the period of lockdown is released…a low supply of available homes is helping to exert upwards pressure on house prices.”

However, the number of mortgage approvals is well below the same period last year.  So although house prices have increased, the number of sales could still be lower than usual,  which pushes up prices.  The Halifax then go on to say;

“However, looking further ahead, there is still a great deal of uncertainty around the lasting impact of the pandemic. As government support measures come to an end, the resulting impact on the macroeconomic environment, and in turn the housing market, will start to become more apparent.”

Want to learn more?

You can read the Halifax House Prices press release here.

Lean more about NewsBrokerUK here.