UK house price growth has decelerated to its weakest pace since late 2023, with average property values falling in July according to data from a major lender.
The slowdown marks a significant contraction in momentum, as the typical home is now worth only 2% more than it was in the summer of 2022, indicating that prices have barely moved over the last four years.
8% last week, signaling that rising borrowing costs are once again weighing heavily on housing market activity.
The repricing reflects persistent headwinds from elevated mortgage rates, which are deterring prospective buyers from entering the market.
This lack of demand is corroborated by broader market indicators showing little sign of recovery; data from property portal Zoopla reveals that three in five homes listed for sale since January remain on the market, highlighting a stagnation in transaction volumes.
The cooling in the UK housing sector mirrors trends seen elsewhere in the developed world.
In the US, mortgage application volumes fell 3.8% last week, signaling that rising borrowing costs are once again weighing heavily on housing market activity.