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Halifax House Price Index July 2022

  • UK house prices increased 11.8% YoY in July according to mortgage lender Halifax. 
  • On a monthly basis, prices dropped 0.1% - the first decrease since June 2021.
  • The average UK property now costs £293,221.

House prices begin to ease

Source: Halifax, IHS Markit

Key trends 

  • Following a year of exceptionally strong growth, UK house prices fell month-on-month in July for the first time since June 2021, albeit marginally (-0.1%).
  • This left the average house price at £293,221 in July, down £365 from the previous month’s record high. 
  • The rate of annual inflation eased slightly to +11.8%, from 12.5% in June, but house prices remain more than £30,000 higher than this time last year.
  • While London continues to record slower annual house price growth than the other UK regions, the rate of +7.9% is the highest in almost five years. 
  • Price gains for larger houses continue to outpace those for smaller homes. The price of a detached house has leapt +15.1% over the last year, compared to +7.7% for flats.


  • While we shouldn't read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time, and further moderation seems the most likely scenario over the second half of 2022. 
  • House prices will come under pressure as market tailwinds fade further and the headwinds of rising interest rates and increased living costs take hold.
  • Leading indicators of the housing market have shown a softening of activity recently, while rising borrowing costs are adding to the squeeze on household budgets against a backdrop of exceptionally high house price-to-income ratios. 
  • That said, some of the drivers of the buoyant market – such as extra funds saved during the pandemic and fundamental changes in how people use their homes, remain evident.
  • The extremely tight supply of properties for sale is also a significant long-term challenge that serves to underpin house price growth.

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