LONDON — Britain's housing market showed signs of slowing in July after new figures revealed that house prices were broadly unchanged, ending several months of modest growth. The latest data suggests that rising mortgage costs and global economic uncertainty are making prospective buyers more cautious.

According to Lloyds, both monthly and annual house price growth remained flat during July. Analysts said the increase in borrowing costs, alongside renewed geopolitical tensions, has reduced affordability for many households entering the market.

Mortgage rates, which had eased earlier in the summer, have begun rising again, creating fresh challenges for first-time buyers and families planning to move home. Property experts say affordability remains one of the biggest barriers to stronger market activity despite continued demand for housing.

Estate agents report that while sellers continue to list properties, buyers are taking longer to make decisions as they assess borrowing costs and wider economic conditions. Industry observers expect activity to remain mixed until interest rate expectations become clearer.

Despite the slowdown, housing experts believe the market remains fundamentally resilient, supported by steady employment levels and continued demand for homes across many parts of the UK. Economists will closely monitor upcoming inflation and interest rate data for signs of when the property market may regain stronger momentum.