UK house prices rose in July after three relatively flat months, according to the latest monthly data from Halifax.
The lender expects house prices to gradually increase further over the rest of the year.
The average house price now stands at £291,268, up by 0.8% or over £2,200 compared to the previous month. On an annual basis prices were 2.3% higher.
Last week the Bank of England ended a year-long interest rate pause with a cut in the base rate to 5%. Mortgage rates were already starting to come down.
Amanda Bryden, head of mortgages at Halifax, said that recent reductions in mortgage costs were “encouraging” for those looking to buy their first home, move along the housing ladder or remortgage.
But she warned that affordability constraints and a lack of available properties still posed challenges for buyers.
“Against the backdrop of lower mortgage rates and potential further base rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year,” Bryden added.
