Market momentum is only likely to accelerate, expert says
The average UK house price grew by 2.2% in the 12 months to May 2024, latest government data has revealed.
The latest house price inflation marks an increase from the revised estimate of 1.3% for the 12 months to April 2024, according to the Office for National Statistics (ONS).
In May 2024, the average UK house price stood at £285,000, around £6,000 higher than the previous year.
Average house prices in England rose to £302,000 (2.2%), in Wales to £216,000 (2.4%), and in Scotland to £191,000 (2.5%). In Northern Ireland, the average house price in the year to Q1 2024 increased to £178,000, marking a 4.0% rise.
Among English regions, Yorkshire and the Humber recorded the highest annual house price inflation at 3.9% in the 12 months to May 2024. London had the lowest annual inflation, with prices rising by 0.2% over the same period.
Average UK house prices increased by 2.2%, to £285,000 in the year to May 2024, up from a revised annual growth of 1.3% last month.
— Office for National Statistics (ONS) (@ONS) July 17, 2024
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“Sold prices have continued to climb in recent months despite the fact that mortgage rates are yet to come down,” said Ed Phillips (pictured left), chief executive of estate and letting agency group Lomond, commenting on the latest UK House Price Index. “Now that the dust has settled on both the general election and England’s Euros ambitions, both of which have acted as distractions to buyers and sellers, we expect the market will now pick up the pace as we enter what is traditionally the busiest time of year.
“This market momentum is only likely to accelerate when a cut to interest rates does materialise and this is very much a case of when, not if.”
For Richard Harrison (pictured centre), head of mortgages at Atom bank, the fact that the Office for National Statistics has now reported three months of straight house price increases is a good indication of the growing confidence in the market.
“This data predates the calling of the general election, however, which may have had a temporary effect on buyer demand and with it house price movements,” he pointed out. “The general election inevitably brought some uncertainty to the market, but the fact that we had such a definitive result means that some sellers and buyers will feel more comfortable pushing on with plans.”
Sara Palmer (pictured right), distribution director at The Mortgage Lender, agreed that the consistent increase in house price growth this year suggests a growth in consumer confidence.
“The recent cuts in mortgage rates by leading high street lenders provide a sense of security for prospective buyers, especially with rumours of a reduced interest rate by the Bank of England to come later this summer, helping to drive demand,” she said.
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