Annual house price inflation drops in July

Based on figures published by the Office for National Statistics, this was also down from the recent peak in annual inflation of 13.8% seen in July lats year. In contrast, the provisional estimate for average UK house price was £2,000 higher than 12 months ago at £290,000 – but is £2,000 below the recent peak in November 2022.  

In Scotland, the average house price dipped month-on-month by 0.2% – going from an increase of 0.3% to a jump of just 0.1% between June and July 2023 – to £192,000, while prices in Wales decreased by 0.1% in the 12 months to July to £216,000.  

Northern Ireland, meanwhile, remains the cheapest country in the UK to purchase property at £174,000, that’s despite an increase of 2.7% over the year to the second quarter of 2023.  

Responding to the figures, Benham and Reeves director Marc von Grundherr said: “Much has been made about the decline of the property market, but the truth of the matter is that house prices continue to sit at their highest levels this side of the Millennium and only marginally off the market peak seen towards the backend of last year.  

“There are sure signs that stability is returning to the London market, with the capital seeing one of the strongest rates of monthly house price growth. This has been largely driven by international buyers who have been less deterred by the current mortgage landscape and the higher rates that have caused many domestic buyers to sit on the fence.  

“So yes, mortgage affordability remains an issue for many buyers, however, those looking to sell should rest assured that their home will still command a solid good price in the current market, whether that be in London or any other area of the nation.” 

Barrows and Forrester managing director James Forrester added: “The true test of the property market is how sold prices are performing and, as it stands, we’re yet to see any notable dip in this respect. Certainly not the 30% crashes predicted by some industry ’experts’. 

“There’s no doubt the market is cooling due to a reduced level of market activity on the side of the nation’s buyers, but given the turbulent economic times of late, today’s figures can be viewed as extremely positive.”