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Halifax house price index: "Following three flat months, prices jumped in July"

ended 07. August 2024

House prices increased by +0.8% in July, following three relatively flat months, according to the Halifax. Meanwhile, the annual growth rate of +2.3% is the highest since January 2024. Newspage asked a selection of property and mortgage experts for their views, below.

6 responses from the Newspage community

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Simon Bridgland
Director at Charwin Private Clients
House prices have not gone on a summer holiday based on this evidence but are hard at it. This increase in summer activity is continuing to be felt as we continue into August and so I would expect another good outcome in the next set of data.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Halifax’s house price index, much like that of the Nationwide, shows the resilience in house prices, which are defying those who predicted double digit crashes. With buyer confidence buoyed by reducing borrowing rates, we could expect to see house prices grow further before the year end. After a flat few months, the property market could be flying in the Autumn.
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Rohit Kohli
Director at The Mortgage Stop
This morning's figures from the Halifax confirm what we are seeing on the ground, namely that prices are starting to climb again. Last week's base rate cut is already starting to fuel demand further and we will see prices continue to rise. However, although borrowing costs are starting to reduce those already struggling with deposits are going to have to work harder to keep up with rising prices. Also, mortgage prices in the higher loan-to-value brackets haven’t reduced by as much as the lower brackets, so affordability is still the biggest struggle at the moment.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
As the Halifax suggests, the recent base rate cut is set to invigorate the property market by reducing borrowing costs and making mortgages more affordable, thereby stimulating demand. However, affordability remains an issue for many potential buyers. We are on the cusp of a sellers' market due to reducing mortgage rates and the ongoing lack of supply. As lenders continue to cut rates, more affordable mortgage options will boost demand, encouraging hesitant buyers to take the leap. For buyers, the message is clear. Act swiftly to capitalise on lower rates and avoid being priced out of the market.
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Andrew Montlake
Managing Director at Coreco
Following three flat months, prices jumped in July. This shows the market still had plenty of energy in it despite the General Election. Even amid the turmoil of recent years, with higher interest rates and a cost of living crisis, house prices have remained remarkably robust, leaving those who have consistently predicted large-scale falls with egg on their faces and starting to soften their words. As we approach a period where interest rates are falling, all that pent-up demand is starting to feed through. High-demand areas where there is a shortage of properties to buy could see larger house price rises. For those looking at buying, the next few months will prove to be a good time to buy, especially when looking back in hindsight in five years' time.
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Riz Malik
Independent Financial Adviser at R3 Wealth
The expectation is that prices will continue to rise considering the recent cut in the base rate and the outlook for further cuts ahead. However, those sitting on their hands waiting for rates to continue to drop might find they end up paying more as competition and confidence return to the market.