19 August 2026
If you are covering the latest house price inflation figures from the Office for National Statistics, please find below a comment from Ian Futcher, financial planner at Quilter:
“The latest UK house price index shows the housing market continued to edge forward in June, with average property prices rising by 0.1% on the month and 2% annually, bringing the average property value to £272,000. Some of this slowing growth was mechanical due to the nature of stamp duty changes in April last year, but nonetheless, today's figures offer a snapshot of where the market stood several months ago.
“Since June, mortgage market conditions have shifted, with lenders competing more aggressively for business and mortgage pricing improving for many borrowers. Transaction levels have also remained relatively resilient, suggesting there is still demand from buyers despite a challenging economic backdrop.
"The outlook has become more complicated, though. The market remains at the mercy of events far outside of the housing sector. The fallout of the conflict in the Middle East pushed the energy price cap up by 13% in July, resulting in today's print showing inflation has jumped to almost 3%. This is likely to reinforce the Bank of England's cautious approach to interest rates, and means a rise is not out of the question. While competition between lenders has helped bring down some mortgage rates, hopes of a more significant fall in borrowing costs in the near term have been dashed, meaning affordability will remain a significant hurdle for many households.
"The summer months tend to be a quieter period for the market at the best of times, and with the ongoing geopolitical tensions and interest rate uncertainty, momentum is likely to have been even more subdued. Looking ahead, mortgage rates will continue to be the key driver of the housing market. If lender competition continues and borrowing costs can gradually ease, activity should remain supported, but a swing the other way could see the market stall once again.”
