British house prices increased by 2.2% annually in July, marking the fifth consecutive month of growth, according to data from the Office for National Statistics (ONS)
released on Wednesday. However, the rate of growth slowed compared to a revised 2.7% increase in the 12 months leading up to June.
In contrast, house prices in London dropped by 0.4%, the ONS reported.
Other indicators in the UK property market have shown signs of recovery, with demand picking up following a reduction in borrowing costs.
However, with no change in consumer price inflation, as indicated by data published earlier on Wednesday, investors have scaled back expectations of an interest rate cut from the Bank of England, which is set to announce its decision on Thursday.
The ONS also noted that private rental prices rose by 8.4% in the year leading up to August.
