Economy

UK Housing Market Sees a Steady Rise: Annual Price Growth Climbs to 2.4% in July

UK Housing Market Shows Resilience with Annual Growth

The United Kingdom's housing market has demonstrated a steady upward trajectory, with annual house price growth reaching 2.4% in July, as reported by the Nationwide House Price Index. This marks a slight increase from the 2.1% growth observed in June, signaling a resilient market amidst economic fluctuations.

Monthly Gains and Market Dynamics

On a seasonally adjusted monthly basis, the index saw a 0.6% rise, surpassing expectations. The average house price in the UK for July stood at £272,664, reflecting an increase of £1,045 from the previous month. This growth underscores the market's strength and adaptability in the face of changing economic conditions.

Expert Insights on Housing Affordability

Robert Gardner, Nationwide's Chief Economist, commented on the market's performance, noting, "Activity appears to be holding up well, despite the volatility from the end of the stamp duty holiday." He further explained, "Housing affordability, which had worsened during the pandemic, is now improving. This is thanks to strong income growth, more subdued house price increases, and a slight decrease in mortgage rates."