UK house price growth slowed to 2.2% in the year to July, according to the latest UK House Price Index from the Land Registry, down from a revised 2.7% in the 12 months to June.

This took the average UK house price to £290,000 in July, a level around £6,000 higher than the same month last year.

Average house prices climbed over the year in England to £306,000 (1.6%), in Wales to £218,000 (2.0%) and in Scotland to £199,000 (6.0%). The average house price increased in the year to Q2 2024 to £185,000 in Northern Ireland (6.4%).

In the English regions, annual house price inflation was highest in the North East, where prices increased by 3.8% in the year to July. London was the English region with the lowest annual rate of growth, where prices decreased by 0.4% over the period.

New homes director at Mortgage Advice Bureau, Mobeen Akram, said that the figures were a “further reminder that there’s plenty to be optimistic about”.

“The market has been showing signs of recovery, albeit gradually, and we expect this to continue and set up for a strong 2025,” Akram added.

“With inflation held at 2.2%, this is another indication that things are stable. We're still likely to see a hold in the next base rate, but there’s a greater potential for cuts in a few months' time.

“With this in mind, there is a more positive feeling among the house-buying public since the election and August's base rate reduction. Confidence is on the rise, and enquiry levels are increasing.”

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