Homeowners have a chance to celebrate with  house prices jumping by 0.4% last month – the highest rate this year. It comes with the Bank of England expected to cut interest rates for the fifth time in a year. The annual rate of price growth was 2.4%, compared to 2.7% in June, and the average property price is now £298,237, compared to £297,157 last month, according to new analysis from Halifax.

Halifax Head of Mortgages Amanda Bryden said that while the national average remains close to a record high, “it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type”. She added that “challenges remain” for those looking to move up or onto the property ladder: “But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving. Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.”

Bryden said the second half of this year will also see “a notable rise” in homeowners finishing fixed-rate deals taken out during the “pandemic property boom”.

She added: “While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households.

“Those coming off a two-year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget.

“We’re unlikely to see a significant impact on house prices, but it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets.”

Ranald Mitchell, director at Norwich-based Charwin Mortgages, said the property market is “not booming, not busting, just quietly adjusting”. He added that July’s rise is “the strongest this year”, but annual growth is “cooling” and the market remains “patchy”.

He said: “Falling mortgage rates and rising wages are helping, but the real test comes as fixed deals end. Some will see payments drop, others will feel the squeeze. It’s a resilient market, but don’t expect fireworks. Just a slow, steady reset.”

Samuel Mather-Holgate, independent financial adviser at Swindon-based Mather and Murray Financial, said that trying to get on the property ladder “seems even more distant” after these figures with “still higher average prices, and the rate of change increasing”.

He said: “The only way to fix this is through supply, and we were promised major reform from this government, a year on and we have seen no improvements on the supply side.

“Head of mortgages at Halifax gives too much weight to those coming off turbocharged mini budget mortgage rates, as these numbers are relatively small. The drop is not as significant as those who switched rates in the other direction at the time of the meltdown.”