UK Housing Market Stalls as Mortgage Rates and Geopolitical Tensions Squeeze Buyers

UK house prices ground to a halt in July, with the average property flat at £299,253, up just 0.1% year-on-year—the weakest annual growth since late 2023. The market, described by analysts as being in "suspended animation," is stuck between stretched affordability and mortgage rates that refuse to fall.

Headwinds

The property market faces a triple squeeze:

• Rising Mortgage Rates: The average two-year fixed rate has climbed to 5.63%, with five-year deals...