Map reveals where house prices are rising according to UK’s biggest mortgage lender – and what will happen this year

HOUSE prices are on the rise in regions across the UK and are set to increase throughout the year, the UK’s biggest lender has revealed.

In England, the steepest rate of house price inflation can be found in the North West, up by 3.8% over the last year, now standing at £231,351, Halifax said.

Northern Ireland recorded the strongest property price growth of any nation or region in the UK, Halifax said.

Prices rose by 4% on an annual basis in June, up from 3.3% in the previous month.

House prices in Scotland also increased, with a typical property now costing £204,663, 1.6% more than the year before.

In Wales, house prices grew annually by 2.7% to reach £220,197.

Not all areas saw price prices rise though.

Eastern England was the only region or nation across the UK to register a decline in house prices over the last year.

House prices now average £328,747, down -0.9% in June on an annual basis.

Meanwhile, London continues to have the most expensive property prices in the UK, now averaging £536,306 – up 0.9% compared to last year.

Across the UK as a whole, House prices fell by 0.2% month-on-month or just under £500 in cash terms in June.

The average UK house price in June was £288,455, edging down from £288,931 in May.

It means the average UK house price remained relatively flat,

But property values are likely to rise modestly through this year and into 2025, the lender said.

Meanwhile, the annual rate of house price growth stood at 1.6%, and on an annual basis house prices have increased for seven months in a row.

Amanda Bryden, head of mortgages, Halifax, said: “Mortgage affordability is still the biggest challenge facing both home buyers and those coming to the end of fixed-term deals.

“This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.

“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to base rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.”

She added that this could ease gradually, particularly if The Bank of England (BoE) pushes ahead with an interest rate cut in August.

Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges, particularly for first-time buyers.

In some signs of relief for borrowers, lenders including Halifax, HSBC UK, Barclays, Santander, NatWest and Yorkshire Building Society have been chopping their mortgage rates this week.

Some 1.6 million mortgages are coming off fixed rates this year, according to UK Finance.

But Labour’s General Election landslide could deliver a confidence boost to the housing market, some experts have said.

Alice Haine, personal finance analyst at Bestinvest said: “A stable political environment can potentially deliver a confidence boost to the housing market, particularly one that has struggled over the past year with high borrowing costs and a dearth of available and affordable stock.

“Buying a first home, upsizing and even downsizing are all major personal finance decisions, which is why confidence in how your country is run is vitally important.

“Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges for first-time buyers and those looking to move to larger homes.

Meanwhile, Nicky Stevenson, managing director at estate agent group Fine and Country added: “While the property market has had to contend with elevated interest rates and political uncertainty, it has held firm and is expected to see further buoyancy following the General Election.

“Annual house price forecasts reflect a more positive outlook than they did in the beginning of the year, helped by headline inflation reaching its target 2%.”

The BoE uses the base rate as a lever to control spending, with higher rates intended to dampen demand and spending, which in turn drives down inflation.

As inflation is set to fall this year, the BoE is expected to follow with rate cuts. It would be good news for homeowners looking to move, households remortgaging and first-time buyers who could see lower mortgage rates.

Here are the average house prices across the UK and the annual increases, according to Halifax:

• East Midlands, £238,055, – 0.4%
• Eastern England, £329,853, -0.8%
• Greater London, 536,821, 0.2%
• North Eas,t 172,449, 1.9%
• North Wes,t 232,258, 3.8%
• Northern Ireland, 191,767, 3.2%
• Scotland, 204,952, 1.9%
• South East, 384,871, -0.2%
• South West, 302,021, 0.4%
• Wales, 219,483, 0.7%
• West Midlands, 252,745, 0.8%
• Yorkshire and Humber, 206,351, 0.9%

Who tracks house prices?

There are several different house price trackers, all of which measure something slightly different.

The official measure comes from the Office for National Statistics, which examines the prices homes have actually sold for after they are registered on the Land Register.

This is the most accurate of all the indices, but the figures come out three months after the homes are sold, so there’s a big time lag.

Nationwide, Rightmove, Halifax, and Zoopla all publish a monthly index tracking the average prices of homes on which they provide mortgages.

While they do adjust their figures to iron out big outliers, both lenders measure average house prices based on the properties they see.

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