Why Britain's housing market is losing momentum as mortgage rates rise again

Britain’s 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, compared with a 0.2% increase in June and below the 0.1% rise economists had expected in a Reuters poll.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.The average UK property price stood at £299,253 in July, down £143 from the previous month, according to Lloyds' monthly index.Mortgage rates rise again as affordability remains stretchedAmanda 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.“Affordability remains a challenge for many would-be buyers and, following…