UK house price growth slows as rents surge in July

According to a report from the Office for National Statistics (ONS), annual house price growth in the UK has decreased to 2.2% in July, down from 2.7% in June. The average property value now stands at £290,000, with regional variations noted. England's average price is £306,000, while Wales and Scotland report averages of £218,000 and £199,000, respectively. Northern Ireland saw a 6.4% increase, with an average price of £185,000. The North East experienced the highest annual growth at 3.8%, contrasting with London, which recorded a 0.4% decline in house prices. Rental prices, however, continue to rise significantly, with an average private rent of £1,286 per month in August, marking an 8.4% increase from the previous year. London leads in rental growth at 9.6%, although this is below the peak of 11.2% seen earlier in the year. Experts suggest that the current economic climate, characterized by high inflation and interest rates, is influencing both the housing and rental markets. The Bank of England is expected to maintain the base rate at 5%, impacting mortgage borrowers, particularly those on tracker rates. While some anticipate future cuts, uncertainty remains due to fluctuating inflation rates. Despite the mixed economic indicators, the housing market shows resilience, with recent mortgage rate reductions providing some relief to borrowers. The ongoing demand for rentals, especially in urban areas, indicates a robust rental market, as landlords navigate the complexities of rising costs and regulatory changes.