UK house prices have increased from July to August of this year, tripling from the same period in 2023, according to the government’s latest house price index.
The report indicates a more rapid house price increase between July and August of this year than the previous, rising from 0.5% in 2023 to 1.5% in 2024.
The data released this morning records average annual UK house price inflation as 2.8%, bringing the average cost of a property to a provisional estimate of £293,000, which is £8000 higher than last year.
Scotland experienced the largest growth, with a 5.4% annual boost and average property prices around £200,000, which remains cheaper than the average cost of homes in England and Wales, which are marked as £310,000 and £223,000 respectively.
The Royal Institution of Chartered Surveyors’ August survey reported a rise in new buyer enquiries and agreed sales as well as a flat or modestly positive picture for house prices throughout the UK, bar Scotland and Northern Ireland where costs continue to rise firmly.
Meanwhile, HMRC’s property transactions data indicates that 5.4% more transactions of residential properties with a value of or above £40,000 happened this August compared to a year ago, although UK transactions decreased by 0.4% on a seasonally adjusted basis between July and August of this year.
Mortgage approvals are at the highest level since August 2022, according to the Bank of England’s August 2024 report, which showed an increase of 2400 to 64,900.
The government also published inflation data today showing the consumer price index in September rose by 1.7% in September, lower than analysts expected. The figure is the lowest it has been since April 2021, prompting speculation of further interest rate cuts.
Nicky Stevenson, managing director at estate agent Fine & Country said: “House prices rose in August, starting the traditional autumn house-hunting season, after many house-buyers put their search on hold for the summer holidays.
“As we head into autumn, many experts anticipate an increase in market activity. Indicators suggest house prices will continue to climb, driven by rising demand.
