"Property market continues to show strong signs of improvement"
UK house price inflation eased to 2.2% in the 12 months to July 2024, down from 2.7% in the year to June, according to the latest government data.
The average UK house price stood at £290,000 in July, an increase of £6,000 compared to the same period in 2023.
Across the UK, average house prices saw varying levels of growth. In England, the average price rose to £306,000, up 1.6% year-on-year. In Wales, house prices increased by 2% to £218,000. Scotland saw the highest growth, with a 6% increase to £199,000, while Northern Ireland recorded a 6.4% rise in the year to the second quarter of 2024, with an average price of £185,000.
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.
CPI rose by 2.2% in the 12 months to August 2024, unchanged from July 2024.
— Office for National Statistics (ONS) (@ONS) September 18, 2024
Read the release ➡️ https://t.co/3rW4NgMQNJ pic.twitter.com/AvTfVmsj53
“The usual autumn uptick in activity seems to have arrived ahead of schedule, with today’s data showing house prices moving upwards,” said Josh Skelding (pictured left), commercial director at Fignum, commenting on the latest UK House Price Index.
“Thanks to falling mortgage rates, both buyers and sellers are becoming more active, boosting demand and gradually pushing house prices up. If interest rates are cut again in the coming months, we’ll only see further gains in the market, helping to keep house prices on a positive trajectory.”
Ed Phillips (pictured centre), chief executive of Lomond, agreed that the property market continues to show strong signs of improvement, having posted six consecutive months of positive house price growth over the course of the year, as well as five consecutive instance of annual growth.
“While interest rates remain far higher than today’s homebuyers have become accustomed to, the first base rate reduction in over four years has only helped to boost buyer confidence, and this is likely to continue with yet further cuts anticipated before the year is out,” he said.
Mark Harris (pictured right), chief executive of SPF Private Clients, however, said that with inflation sticking at 2.2% and expected to edge up in the autumn, it’s unlikely that there would be a further rate cut from the Bank of England this month.
“The good news for borrowers is that mortgage rates continue to soften, with Santander introducing a sub-4% two-year fix on the back of the lowest two-year swap rates in two years,” Harris noted. “There are also plenty of five-year fixes at sub-4% for those looking for certainty over a longer period.
“While rock-bottom rates have long gone, these reductions are giving borrowers some comfort after a prolonged period of rising rates. Competition between lenders is likely to mean further gentle reductions in mortgage rates as they vie for new business.”
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