{"id":10317,"date":"2026-08-09T06:08:00","date_gmt":"2026-08-09T06:08:00","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=10317"},"modified":"2026-08-09T06:08:00","modified_gmt":"2026-08-09T06:08:00","slug":"britain-housing-market-why-britains-housing-market-is-losing-momentum-as-mortgage-rates-rise-again","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=10317","title":{"rendered":"Britain Housing Market: Why Britain&#8217;s housing market is losing momentum as mortgage rates rise again |"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-133056691,imgsize-144800,width-400,height-225,resizemode-4\/uk-housing-market.jpg\" alt=\"Why Britain's housing market is losing momentum as mortgage rates rise again\" title=\"A view of a row of residential houses in the UK (Picture credit: Reuters)\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"A view of a row of residential houses in the UK (Picture credit: Reuters)\">A view of a row of residential houses in the UK (Picture credit: Reuters)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>Britain\u2019s housing market lost momentum in July as higher mortgage rates, stretched affordability and uncertainty linked to the Iran war weighed on demand, with house prices remaining broadly unchanged during the month, mortgage lender Lloyds said.<span class=\"id-r-component br\" data-pos=\"2\"\/>House prices were flat in July, compared with a 0.2% increase in June and below the 0.1% rise economists had expected in a Reuters poll.<span class=\"id-r-component br\" data-pos=\"4\"\/>On an annual basis, prices rose just 0.1%, down sharply from 0.7% growth in June and marking the weakest annual increase since November 2023, according to Lloyds data.<span class=\"id-r-component br\" data-pos=\"6\"\/>The average UK property price stood at \u00a3299,253 in July, down \u00a3143 from the previous month, according to Lloyds&#8217; monthly index.<span class=\"id-r-component br\" data-pos=\"10\"\/><\/p>\n<p><h2><b>Mortgage rates rise again as affordability remains stretched<\/b><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"12\"\/>Amanda Bryden, head of mortgages at Lloyds, said affordability remained a major hurdle for prospective buyers, with mortgage rates rising again following recent developments in the Middle East.<span class=\"id-r-component br\" data-pos=\"14\"\/>\u201cAffordability remains a challenge for many would-be buyers and, following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer,\u201d Bryden said, as cited by Reuters.<span class=\"id-r-component br\" data-pos=\"17\"\/>She said housing demand remained broadly steady but activity was responding quickly to changes in mortgage rates.<span class=\"id-r-component br\" data-pos=\"19\"\/>She added that Lloyds expected market activity and house prices to remain relatively stable for the rest of the year, with the outlook depending on mortgage rates, inflation and household confidence.<span class=\"id-r-component br\" data-pos=\"21\"\/>The conflict in the Middle East has added to concerns over inflation and increased expectations of higher interest rates.<span class=\"id-r-component br\" data-pos=\"24\"\/>According to The Guardian, the average rate on a two-year fixed residential mortgage was 5.63% on Friday, while the average five-year rate stood at 5.67%, with both rates below 5% at the start of the year.<span class=\"id-r-component br\" data-pos=\"26\"\/>The increase in borrowing costs has tempered what had been a stronger start to 2026 for Britain&#8217;s housing market.<span class=\"id-r-component br\" data-pos=\"28\"\/>Previously released Bank of England data showed mortgage approvals in June were higher than economists had expected despite elevated borrowing costs.<span class=\"id-r-component br\" data-pos=\"31\"\/>Investors were also fully pricing in a 25-basis-point increase in the Bank of England&#8217;s main interest rate in December as of Thursday, Reuters reported.<span class=\"id-r-component br\" data-pos=\"33\"\/><\/p>\n<p><h2><b>North-south divide widens across UK<\/b><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"35\"\/>The slowdown was uneven across the country, with Northern Ireland continuing to record the strongest annual price growth.<span class=\"id-r-component br\" data-pos=\"37\"\/>House prices in Northern Ireland rose 7.4% from a year earlier, taking the average property value to \u00a3231,131, according to Lloyds data.<span class=\"id-r-component br\" data-pos=\"39\"\/>Scotland recorded annual growth of 3.6%, with the average price reaching \u00a3223,246, while Wales saw prices rise 1.6% to \u00a3231,458.<span class=\"id-r-component br\" data-pos=\"42\"\/>Northern England also outperformed southern parts of the country. Prices in the north-east increased 2.8% annually to \u00a3182,488, while those in the north-west rose 2.1% to \u00a3247,836.<span class=\"id-r-component br\" data-pos=\"44\"\/>By contrast, the south-east recorded a 2% decline, with the average property price falling to \u00a3381,146. Greater London saw prices drop 1.3% to \u00a3533,930.<span class=\"id-r-component br\" data-pos=\"46\"\/>The regional gap reflects differences in affordability and the balance between supply and demand. <!-- -->Nicholas Finn, managing director at London estate agent Garrington Property Finders, said the divide between northern and southern England was becoming more pronounced.<span class=\"id-r-component br\" data-pos=\"50\"\/>In southern areas, he said, a higher supply of homes was attracting too few buyers, putting downward pressure on prices, while more balanced supply and demand in northern England was supporting prices.<span class=\"id-r-component br\" data-pos=\"53\"\/>Anthony Codling, an analyst at RBC Capital Markets, described the market as being in \u201csuspended animation\u201d, according to The Guardian.<span class=\"id-r-component br\" data-pos=\"56\"\/>He said prices were neither falling sharply nor rising decisively, with stretched affordability and mortgage rates limiting the recovery.<span class=\"id-r-component br\" data-pos=\"58\"\/>The latest figures suggest that Britain&#8217;s housing market is entering the second half of 2026 with momentum significantly weaker than at the beginning of the year, as the cost of borrowing and wider economic uncertainty continue to influence buyer activity.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/real-estate\/news\/why-britains-housing-market-is-losing-momentum-as-mortgage-rates-rise-again\/articleshow\/133056565.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A view of a row of residential houses in the UK (Picture credit: Reuters) Britain\u2019s housing market lost momentum in July as higher mortgage rates, stretched affordability and uncertainty linked to the Iran war weighed on demand, with house prices remaining broadly unchanged during the month, mortgage lender Lloyds said.House prices were flat in July, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/uk-housing-market.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"A view of a row of residential houses in the UK (Picture credit: Reuters) Britain\u2019s housing market lost momentum in July as higher mortgage rates, stretched affordability and uncertainty linked to the Iran war weighed on demand, with house prices remaining broadly unchanged during the month, mortgage lender Lloyds said.House prices were flat in July, [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 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