Expert says market is benefitting from a more relaxed economic environment
UK house prices grew by 2.8% in the 12 months to August 2024, up from a revised 1.8% in the 12 months to July, according to government data.
The average house price in the UK reached £293,000 in August, an increase of £8,000 compared to the same period last year.
Regionally, house prices in England grew by 2.3% to £310,000, in Wales by 3.5% to £223,000, and in Scotland by 5.4% to £200,000. In Northern Ireland, house prices rose by 6.4% to £185,000 for the year ending in Q2 2024.
The latest UK House Price Index showed that month-on-month, house prices increased more sharply between July and August 2024, rising by 1.5% on a non-seasonally adjusted basis, compared to a 0.5% rise in the same period last year. When seasonally adjusted, house prices grew by 1% from July to August 2024.
Among English regions, the North West recorded the highest annual price inflation at 4.6%, while the South West saw the lowest at 0.8%.
Among English regions, the North East saw the highest annual price growth, with a 3.8% increase in the 12 months to July. London experienced the weakest performance, with house prices declining by 0.4% year-on-year.
Average UK house prices increased by 2.8%, to £293,000 in the year to August 2024, up from £289,000 in July 2024.
— Office for National Statistics (ONS) (@ONS) October 16, 2024
Average UK private rents increased by 8.4% in the year to September 2024, unchanged from August 2024.
Read the release ➡️ https://t.co/lz1wKTOZsl pic.twitter.com/gQ9xmBXa6l
“House prices have been pushed higher once more, off the back of a much more active housing market,” said Richard Harrison (pictured left), head of mortgages at Atom bank.
“Data from Rightmove shows that the number of agreed sales is up by 25% on this point last year, with plenty of buyers who may have put their plans on ice deciding to pull the trigger. Sellers are more confident too, with the number of new sellers up by 14% on last year, while estate agents have the highest stock levels since 2014. That’s a recipe for a much busier market in the final few months of the year, and most likely further house price growth.
“While there’s no base rate decision in October, the markets continue to expect at least one more cut before the end of the year. We saw activity pick up after the first base rate cut in four years, and a second cut will only further boost interest among buyers, as mortgage rates become more attractive.”
For Ben Nichols (pictured centre), managing director at RAW Capital Partners, today’s official data indicates that the market is benefitting from a more relaxed economic environment, which was instigated by the Bank of England’s recent rate cut.
“With another cut anticipated at the BoE’s meeting in November, it is clear that the market is now in a much more stable period compared to previous years, which should support further capital growth in the coming months,” he said.
“Admittedly, the upcoming Autumn Budget adds complexity, with rumours of tax and regulatory reforms dominating the property press at present. However, it’s important to remember that the core fundamentals of the market — strong demand and limited supply — remain intact. Therefore, we do not expect any significant slowdown in activity following Rachel Reeves’ speech, as the outlook for the BoE’s base rate should have a greater influence on people’s plans.”
“Today’s drop in inflation is undoubtedly a weight off the shoulders for many looking to buy or move,” added. Mobeen Akram (pictured right), new homes director at Mortgage Advice Bureau.
“This has been echoed with recent sentiment from the Bank of England, who have intimated a more aggressive cut to interest rates, given the more resilient economy we’re now experiencing.
“Overall, there is a sense of optimism in the industry – despite some hurdles we’ve yet to overcome, we’re certainly looking to end the year on a much more optimistic note.”
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