UK House Prices Stabilize; Corporate Investment Shifts Toward Britain

UK house prices showed signs of stabilization in June, with Halifax data recording zero month-on-month growth (previous figure revised up to -0.3%) and annual gains edging down to 2.5%. While April’s stamp duty hike dampened activity—prices are slightly lower than late 2023—mortgage rates have fallen to their lowest since 2023. Halifax Mortgages Director Amanda Bladen noted wage growth is supporting market resilience, with two rate cuts expected this year likely to drive modest price recoveries in H2.

A striking shift in corporate investment preferences emerged: Deloitte’s latest CFO survey revealed the U.S. attractiveness index plummeted from +59% pre-Trump to +2%, amid tariff-driven uncertainty—mirroring a sharp Q1 drop in U.S. foreign direct investment. By contrast, the UK’s net investment appeal surged from -12% to +13%, a survey high, ranking second globally (behind India) and far ahead of negative scores in Europe and China. Deloitte UK CEO Richard Houston called this a sign Britain "has regained status as a leading global investment destination."

Business confidence among 66 UK firms (total market cap £386 billion) inched up from -14% to -11% but remains weak. Sluggish growth poses a challenge for Chancellor Rachel Reeves, with markets expecting potential tax hikes in the next budget to balance finances.