Experts give their take on the April house price data
The average UK house price rose by 1.1% in the 12 months to April 2024, up from a revised 0.9% in the 12 months to March, government data has revealed.
The annual price growth brings the average house price to £281,000, a £3,000 increase from the previous year.
In the 12 months to April, average house prices grew by 0.6% to £298,000 in England, by 0.4% to £208,000 in Wales, and by 4.5% to £190,000 in Scotland. Northern Ireland saw a 4% increase in the year to Q1 2024, with average prices reaching £178,000.
On a non-seasonally adjusted basis, average UK house prices rose by 0.3% between March 2024 and April 2024, compared with a 0.1% increase during the same period a year earlier.
Among English regions, the North West experienced the highest annual house price inflation at 3.8% in the 12 months to April 2024. London recorded the lowest annual inflation, with prices decreasing by 3.9% over the same period.
Average UK house prices grew 1.1% in the year to April 2024, up from a revised growth of 0.9% in the year to March 2024.
— Office for National Statistics (ONS) (@ONS) June 19, 2024
Read Private rent and house prices ➡️ https://t.co/mZSwvA75iP pic.twitter.com/aZ2VUx97FP
“House prices have risen for two months in a row now, a clear symptom of improved levels of optimism among buyers,” said Richard Harrison, head of mortgages at Atom bank, commenting on the latest UK House Price Index. “Would-be purchasers are feeling more confident about pushing on with transactions, however this morning’s inflation news has seemingly dampened economists’ expectations around any imminent cut to base rate, which will clearly impact mortgage rates.
“While there are mixed messages around the immediate prospects of the market, estate agents are reporting significant jumps in the number of prospective buyers registering with them, at a faster rate than increases in supply, and that is driving prices higher. That is feeding through into increased activity levels, with estate agents seeing the number of agreed sales improve to the highest level in two years.”
Still, there is a sense that some buyers and sellers are waiting for the first rate reduction before taking action, according to Mark Harris, chief executive of mortgage broker SPF Private Clients.
“Although swap rates were already falling before the publication of the latest inflation data, mortgage pricing is fairly flat with little movement up or down,” Harris noted. “There is a sense that things are on hold until the election is out of the way.
“Following a somewhat challenging first half of the year, there are hopes that a post-election bounce will lead to a more promising autumn for the housing market.”
Emma Cox, managing director of real estate at Shawbrook, said the April house price data indeed confirms the positive trend observed on the ground throughout the year so far.
“This sustained growth is encouraging, indicating a cautious return of confidence in the market, despite the absence of an anticipated near-term base rate cut.”
Any thoughts on this latest ONS release of the UK House Price Index? Tell us by leaving a comment in the discussion box at the bottom of the page.
