Price growth marks a turnaround in confidence among buyers, expert says
UK house prices rose by 1.8% in the 12 months to March 2024, up from a revised estimate of -0.2% in the 12 months to February, according to recently published government figures.
The average house price in the UK was £283,000 in March, an increase of £5,000 compared to the same period last year.
Regionally, average house prices increased annually in England to £299,000 (1%), in Wales to £214,000 (1.3%), and in Scotland to £192,000 (6.7%). In Northern Ireland, the average house price rose to £178,000 in the first quarter of 2024, marking a 4% increase.
Among English regions, Yorkshire and the Humber recorded the highest annual house price inflation at 5% in the 12 months to March 2024. London experienced the lowest annual inflation, with prices decreasing by 3.4% over the same period.
Average UK house prices increased by 1.8% in the year to March 2024, the first annual increase since June 2023.
— Office for National Statistics (ONS) (@ONS) May 22, 2024
Average UK private rents rose by 8.9% in the 12 months to April 2024 (provisional estimate), down from 9.2% in the 12 months to March 2024.
➡️ https://t.co/7NllekCjf8 pic.twitter.com/JZ9Z3MvC4t
“Average UK house prices grew over the year for the first time since last summer,” Grant Fitzner, chief economist at the Office for National Statistics (ONS) said, commenting on the latest UK House Price Index. “House prices saw an annual rise in every nation and region, except London and the South East, with Scotland seeing the fastest annual growth.”
Richard Harrison, head of mortgages at Atom bank, said the increase in house prices reported today brings to an end a long run of falls, and marks a clear turnaround in confidence among buyers.
“While inflation has fallen by less than expected today, denting hopes of an imminent reduction in base rate, the reality is that cuts are coming and that is bringing would-be purchasers back to the market,” he added.
“Asking prices at a record high is a signal of pent-up demand, with the number of sales agreed in the first four months up by 17% on the same period last year. This is borne out by figures from Propertymark showing that estate agents are seeing increases in the number of would-be buyers registering with them. This growing demand has already translated into house price increases reported by the Halifax and Nationwide indices, and it was only a matter of time before this was reflected in ONS reports given the lag in the data.”
For Ed Phillips, chief executive of lettings and sales agents network Lomond, the market “is very much heading in the right direction” with house prices continuing to creep up on a monthly basis and market confidence growing.
“While homebuyers are still facing substantially higher borrowing costs, the outlook for the year ahead remains a positive one, particularly now that inflation has eased and an interest rate cut is on the horizon.”
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