Halifax: July shows +3.8% annual house price change

House prices in July 2020 were 1.6% higher than in June, and 3.8% higher than July 2019, according to the Halifax House Price Index.

The May to July quarter showed a -0.2% change compared to February to April.

The average house price in July was £241,604, compared with £232,706 in the same month in 2019, and £237,834 in June 2020.

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The highest point prior to this in the last year was February, which saw average house prices of £240,461.

Russell Galley, managing director at Halifax, said: “Following four months of decline, average house prices in July experienced their greatest month on month increase this year, up 1.6% from June and comfortably offsetting losses in 2020.

“The average house price in July is the highest it has ever been since the Halifax House Price Index began, 3.8% higher than a year ago.

“The latest data adds to the emerging view that the market is experiencing a surprising spike post lockdown.

“As pent-up demand from the period of lockdown is released into a largely open housing market, a low supply of available homes is helping to exert upwards pressure on house prices.

“Supported by the government’s initiative of a significant cut in stamp duty, and evidence from households and agents suggesting that confidence is currently growing, the immediate future for the housing market looks brighter than many might have expected three months ago.

“However, looking further ahead, there is still a great deal of uncertainty around the lasting impact of the pandemic.

“As government support measures come to an end, the resulting impact on the macroeconomic environment, and in turn the housing market, will start to become more apparent.

“In particular, a weakening in labour market conditions would lead us to expect greater downward pressure on prices in the medium-term.”