Halifax said the average cost of a home increased more than £2,200 to £291,268 last month, when compared with June
House prices gained 0.8% in July following three flat months for the market, according to one of the UK’s biggest mortgage lenders.
Halifax said the average cost of a home increased more than £2,200 to £291,268 last month, when compared with June.
Annual prices also rose 2.3%, the lender said on Wednesday.
It comes amid expectations of a pick-up in the market after the BoE reduced interest rates on 2 August for the first time in over four years.
The quarter percentage point cut to 5% came after the period covered by Halifax’s figures.
However, the banking brand’s head of mortgages Amanda Bryden said: Last week’s cut, which follows recent cuts in mortgage rates, is encouraging for those looking to remortgage, buy a first home or move along the housing ladder.
But she cautioned that affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.
Bryden said: Against the backdrop of lower mortgage rates and potential further Base Rate cuts, we expect house prices to continue a modest upward trend throughout the remainder of this year.
On a regional basis, Halifax said there had been strong growth in the North West, where month-on-month prices rose 4.1%. The average property there is said to cost £232,489.
The lender said London continues to have the most expensive property prices, with the average home in the capital now said to be £536,052.
Economist Ashley Webb, from research firm Capital Economics, said the nationwide rise was further evidence that house prices are rebounding from the marginal increase in mortgage rates in the first half of this year.
He said: While we think the BoE will hold off until November before reducing interest rates again, the risks are now skewed to the next rate cut happening a bit sooner than we anticipate.
That may mean house price growth accelerates quicker than we expect over the rest of this year, he added.
