"The overall performance of the housing market remains a key indicator of wider economic health, and it’s encouraging to see more people demonstrating they have the confidence and affordability to approach the buying and selling process"
- Nathan Emerson - Propertymark
Average UK house price annual inflation reached 2.8% in the 12 months to August 2024, according to this morning's data released by ONS - up from the revised estimate of 1.8% in the 12 months to July 2024.
Average UK house prices
The average UK house price was £293,000 in August 2024 - £8,000 higher than 12 months ago. Average house prices in the 12 months to August 2024 increased in England to £310,000 (2.3%), increased in Wales to £223,000 (3.5%) and increased in Scotland to £200,000 (5.4%). The average house price increased in the year to Q2 (Apr to Jun) 2024 to £185,000 in Northern Ireland (6.4%).
On a non-seasonally adjusted basis, average UK house prices increased more rapidly between July 2024 and August 2024 (1.5%) than in the same period 12 months ago (0.5%). On a seasonally adjusted basis, average house prices in the UK increased by 1.0% between July 2024 and August 2024.
Of English regions, annual house price inflation was highest in the North West, where prices increased by 4.6% in the 12 months to August 2024. The South West was the English region with the lowest annual inflation, where prices increased by 0.8% in the 12 months to August 2024.
Nathan Emerson, CEO of Propertymark comments: "It is extremely upbeat to see the year continue with consistent growth. The overall performance of the housing market remains a key indicator of wider economic health, and it’s encouraging to see more people demonstrating they have the confidence and affordability to approach the buying and selling process.
"There are still sizeable challenges ahead to ensure long-term stability within the marketplace, especially on the back of an ever-growing population. It would be encouraging to see indications that the upskilling required to deliver the nearly two million homes promised across this parliamentary term is underway to ensure an adequate supply is under construction to meet the current levels of demand."
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 you won’t miss out."
Sara Palmer, Distribution Director at The Mortgage Lender, comments: “Despite the typical summer slowdown in activity within the property market, house prices have continued to rise modestly in response, a positive sign for demand as we enter the last quarter of the year. The Bank of England’s rate dropping to 5% and mortgage lenders reducing their rates in response will have helped to drive activity and will be welcome news for those looking to buy or sell their property before the end of the year.
“Overall 2024 has been a much more stable year for the sector and many will be hoping for further good news in the upcoming Autumn Budget. First-time buyers in particular will be holding out hope for further announcements to complement Labour’s planned shake-up of housing reforms and house-building targets which should boost future housing supply. With so many currently reliant on the private rental sector, whatever’s announced will need to balance the need for more income into the treasury without penalising landlords that are providing much-needed accommodation for renters.
“Those looking to buy a property between now and the New Year should consider speaking to a broker to discuss their options and ensure they’re in the best position possible to secure a mortgage.”
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, comments: “All eyes are on the Budget in a fortnight’s time, but the housing market clearly isn't waiting for the Chancellor’s speech to make moves towards recovery and growth. A modest summer house price surge after the July election is a sign of confidence steadily returning.
"House prices have been chalking up marginal but consistent gains since the start of the year, helping to put homeowners in a better financial position despite the higher interest rate environment. The pledge to shield working people from tax rises should mean this Halloween Budget doesn't spook the markets and mortgage affordability should emerge intact.
“We’ve not yet settled into ‘business as usual’ mortgage lending in the post-pandemic era, and it’s very likely the new status quo will involve a bigger and more active market for second charge mortgages than before. A £2bn market for homeowner loans is within sight while still representing the tip of the iceberg.
“If you’re a homeowner in the process of making financial plans and weighing up your borrowing options, the chances are you’ll default to thinking about credit cards, personal loans and very little else. This ingrained habit means second charge or ‘homeowner loans’ are often the forgotten child of the mortgage world, but many people might find the time invested in seeking expert advice pays off in a better outcome, thanks to the flexibility, certainty and affordability which homeowner loans can provide.”
