England’s average price reached £292,000, a 2.3% annual increase, easing from 4.0% in April — again primarily a base effect rather than a market reversal.
Within England, the North East led on regional price inflation at 5.9% annually, though down from 9.7% in April. London remained the outlier, recording a 3.7% annual price fall — the ninth consecutive month of decline — driven predominantly by Inner London, where prices dropped 5.9%. Westminster and Tower Hamlets saw some of the largest falls. Outer London fared better, with a more modest 0.3% annual decline.
Industry figures pointed to the broader picture of resilience. “House prices are continuing to feel the effects of events outside of the market itself,” said Chris Storey (pictured right), chief commercial officer at Atom bank. “The conflict in Iran, and the resulting impact on interest rate forecasts, has understandably led some potential buyers to pause their plans, and that is feeding through into the modest growth we are seeing currently. With the ceasefire failing, that uncertainty is likely to carry on.
“Despite these challenges, recent analysis from the Royal Institution of Chartered Surveyors (RICS) suggests the market is stabilising, with some improvements seen on new buyer enquiries and agreed sales. Mortgages are becoming far more competitive too, with Moneyfacts reporting the biggest fall in average rates in two years between June and July.
“The new Prime Minister, Andy Burnham has promised a dramatic improvement in the number of council houses built across the country, but he will also need to oversee an improvement in the number of private developments if we are to ensure home ownership becomes more affordable and achievable.”