The August 2024 data shows a generally positive trend in the UK housing market with notable regional variations. Here’s a breakdown of the key points:
Overall UK Market
- House prices rose by 1.5% between July and August 2024.
- Annual increase: 2.8%, with the average property now valued at £293,000.
- There were 90,000 property transactions in August 2024, a 5.4% increase compared to the previous year.
England
- England’s average house price: £310,000, with a 1.6% monthly increase and a 2.3% annual rise.
- Yorkshire and the Humber saw the most significant monthly rise at 2.7%.
- The South West experienced the biggest monthly price fall, with a 0.3% drop.
- The North West led annual growth with prices up by 4.6%.
Regional Insights (England)
- London: Average price £531,000. Despite a 2.2% monthly increase, there was a 1.4% annual price fall.
- North West: The strongest annual price increase of 4.6%.
- South West: The lowest annual growth, just 0.8%.
Property Types (England)
- Detached properties rose by 0.8% annually, while semi-detached homes saw a 3.3% rise.
- Terraced houses and flats increased by 2.5% and 2.4% respectively.
Wales
- Wales saw a 2.6% rise in prices since July 2024 and an annual increase of 3.5%, with the average property valued at £223,000.
- The highest rise was in semi-detached (4.1%) and terraced houses (4.2%).
London Specifics
- London prices increased 2.2% monthly, but had an annual decline of 1.4%.
- Detached homes dropped by 2.1% annually, but flats rose by 2%.
New Builds vs Resales
- New builds across the UK saw significant annual price increases of 25.9% in England and 25.7% in Wales, although they experienced slight monthly declines.
- Resold properties in England rose by 1.1% annually.
Despite regional disparities, the overall trend reflects continued resilience in the housing market, bolstered by a mix of factors including regional growth and increased mortgage availability. For potential buyers and investors, it’s important to consider these regional nuances when making decisions.
Industry Comments
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “With inflation slowing to a lower-than-expected 1.7 per cent, it’s time for the Bank of England to be bold and brave with a rate cut at November’s meeting, followed by another in December.
“Such reductions would be well received by the market, boosting activity at a time when there is plenty of uncertainty caused by the impending Budget.
“Mortgage rates have started rising in recent days on the back of higher Swap rates, although these have since dropped considerably this morning on the back of lower inflation. Borrowers can reserve mortgages up to six months before required, so it’s worth speaking to a broker and locking into a rate now in case they edge up further. If rates are falling again by the time you take out the mortgage, you can opt for a cheaper rate so won’t miss out.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “Even with lower inflation, considering the high cost of living, stamp duty and mortgages, it is surprising the housing market is holding up as well as it is, but in London in particular this is down to limited supply coupled with plenty of demand.
“Price rises are fairly steady with a significant upwards pressure in pricing requiring a considerable easing of mortgage rates and an influx of new buyers, neither of which look likely. However, healthy prices are being achieved on plenty of properties, and many are achieving asking price and even over, if the property is particularly desirable.
“Sellers who are motivated should not wait for their properties to go stale but be proactive and take advice from their agent as to what the asking price should be.”
Tomer Aboody, director of specialist lender MT Finance, says: “The housing market continues to go from strength to strength with prices edging upwards as buyer and seller confidence grows. However, some of this recovery is down to the comparison with the static, slow market of last year, where prices and transactions were down.
“We are now seeing the fruits of a better economy and lower rates, with mortgages much more affordable than this time last year. Lower inflation should also persuade the Bank of England to take action and reduce rates further.
“With the October Budget looming, we hope this positive trend continues but many fear what Rachel Reeves might bring.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “This most comprehensive of all house-price surveys, as it includes cash and mortgage transactions, demonstrates once again considerable market strength despite reflecting activity over the past three months at a time of economic and political turbulence.
“Today’s larger-than-expected fall in inflation, added to yesterday’s in wage growth, will raise expectations of further cuts in mortgage costs and be a welcome shot in the arm to buyer confidence.”
