London, July 8, 2024 – UK house prices recorded a slight month-on-month decline in June but are expected to bounce back by the end of 2024 and into 2025, driven by expectations of interest rate cuts by the Bank of England (BoE).
According to Halifax, the UK’s largest mortgage lender, house prices fell by 0.2% in June compared with the previous month. However, on an annual basis, house prices were 1.6% higher, with the strongest regional growth recorded in Northern Ireland (4%) and London (0.9%).
Despite the signs of a slowdown in the UK housing market, Amanda Bryden, head of mortgages at Halifax, pointed out that overall activity is gradually recovering. Halifax expects house prices to rise again in the coming months, fueled by the anticipated BoE rate cuts. Investors are highly optimistic about this scenario, with a 55% chance of a rate cut at the central bank’s August 1 meeting. If realized, it would be the first rate reduction in over four years.
Key takeaways from the article:
- UK house prices fell by 0.2% in June.
- House prices have risen by 0.4% since the beginning of 2024.
- On an annual basis, house prices are 1.6% higher.
- The strongest regional house price growth was recorded in Northern Ireland (4%).
- London house prices rose by 0.9%.
- Halifax expects house prices to rise by the end of 2024 and into 2025.
- Investors are betting on a Bank of England rate cut on August 1.
