The cost of homes is rising at the quickest rate since the start of the year

The most recent Halifax house price index showed that UK house prices increased marginally in July following three months of stagnation, boosted by significant increases in the North West and Northern Ireland.

The value of homes is predicted to rise further after the Bank of England chose to lower interest rates at the beginning of the month, making it simpler for British citizens to obtain a mortgage. In total, prices rose by 0.8% last month compared to June.

The average price of a house has increased to £291,268 after a 2.3% annual increase in home prices, the biggest increase since January.

Out of all the regions, Northern Ireland witnessed the most increase in prices, up 5.8% over the previous year. Meanwhile, the North West saw a 4.1% increase in property values over 2023.

"Last week's Bank of England Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home, or move along the housing ladder," stated Amanda Bryden, head of mortgages at Halifax.

"Yet, potential homeowners still face difficulties due to a scarcity of available properties and financial restrictions.

"We expect house prices to continue a modest upward trend throughout the remainder of this year, given the backdrop of lower mortgage rates and potential further Base Rate reductions."

(Sources: investing.com, proactiveinvestors.co.uk)