Updated
Updated · Mortgage Professional · Jul 31
UK House Price Growth Slows to 1.8% in July as Rate Expectations Turn Volatile
Updated
Updated · Mortgage Professional · Jul 31

UK House Price Growth Slows to 1.8% in July as Rate Expectations Turn Volatile

3 articles · Updated · Mortgage Professional · Jul 31

Summary

  • 1.8% annual growth in July marked a slowdown from 2.2% in June, while Nationwide said UK house prices were broadly flat month on month and the average home cost £277,542.
  • Nationwide linked the softer market to geopolitical tensions, higher energy prices and volatile expectations for the Bank of England's future rate path, which have kept activity subdued.
  • An unchanged interest-rate decision this week offered borrowers more certainty, though industry group Propertymark said constrained supply, shifting borrowing costs and uneven regional demand still cloud the outlook.
  • Separate housing-tenure data showed average residence lengths have stayed near 14 years since 2010/11, while about 200,000 private renters became owner-occupiers in 2024/25 and roughly 100,000 owners moved into renting.

Insights

With the Iran war threatening energy costs, could this surprise UK house price bump be the calm before an inflation storm?
Are resilient first-time buyers secretly propping up a fragile UK property market despite soaring geopolitical risks?
Sellers are slashing asking prices while official property values rise—who is actually winning in this contradictory housing market?