Average UK house prices rose by 3.4% to £292,000 in the year to October 2024, up from a 2.8% increase in the previous 12 months, according to the latest Office for National Statistics (ONS) figures.
House prices climbed across the UK, with England reaching £309,000 (+3.0%), Wales hitting £222,000 (+4.0%) and Scotland rising to £197,000 (+5.5%).
Meanwhile, average private rents surged by 9.1% in the year to November 2024, accelerating from an 8.7% rise in October. England led the rental market with rents up 9.3% to £1,362, followed by Wales at £772 (+8.0%) and Scotland at £980 (+6.5%). Northern Ireland saw a 9.0% increase in rents up to September 2024.
In England, London recorded the sharpest rental inflation at 11.6%, while Yorkshire and The Humber posted the slowest growth at 5.7%.
HUGELY ENCOURAGING
Nathan Emerson, Propertymark Chief Executive, says: “Looking at the entire year in view and against a backdrop of challenging economic conditions and political change, it is hugely encouraging to witness such a strong year of overall growth within the housing market.
“As we head across the winter months, we are expecting to see house transactions pick up beyond what is normally expected across England and Northern Ireland for this time of the year, as people look to complete on a sale before new Stamp Duty thresholds take effect next April.”
LETTINGS CHALLENGE
And he adds: “The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate.
“It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next 10 years.”
FAR FROM SMOOTH
Jonathan Hopper, Chief Executive of Garrington Property Finders, says: “For all the reassuring familiarity of the headline growth figures, the path of Britain’s property price rises is far from smooth.
“On an annual basis, every part of the UK saw average prices rise in October. But dig deeper into today’s official data and the momentum looks less assured.
“Prices fell in four out of the nine English regions compared to the previous month, and on the front line we’re starting to see price inflation cool.”
PRAGMATIC APPROACH
And he adds: “While there is no shortage of buyers, those planning a move are increasingly pragmatic and price-sensitive. This sense of caution is likely to heighten following November’s sharp increase in consumer inflation – which is eating into people’s disposable income and could delay next year’s long hoped-for reduction in interest rates.
“As a result we’re seeing some buyers reassessing what they can afford. The glut of homes for sale means they’re often spoilt for choice, and this is giving them the confidence and leverage they need to negotiate hard on price.
“This is a healthy market, with plenty of both supply and demand. But with the prospect of cheaper mortgages now likely to be off the table for several months as the Bank of England once again battles to tame inflation, price growth over the next few months is likely to be modest at best.”
CONSIDERABLE RESILIENCE
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “This is the most comprehensive house price index as it covers cash and mortgaged sales, and shows the market is displaying considerable resilience.
“However, we shouldn’t get too carried away as the figures cover in particular the period leading up to the Budget when many were trying to complete transactions before anticipated tax rises.
“The removal of the stamp duty concession at the end of March is fuelling some more first-time buyer activity which will have a positive impact on the rest of the market by helping to connect chains.
“However, the prospect of mortgage rates, as well as now inflation, staying higher for longer will mean no more than a steady improvement in activity in early 2025.”
VALUES HOLDING
And Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “With house values holding fairly steady and sellers more realistic about pricing, it could be the nudge buyers need to act in the new year, particularly if the Bank of England continues to cut interest rates.
“Transaction levels remain subdued compared to pre-pandemic norms, as high borrowing costs and stamp duty continue to weigh heavy on the market. We are noticing a growing divide between well-priced homes, which are selling without difficulty and overpriced ones, which are stagnating on the market.
“However, a fresh new year and hopefully the return of sub-4 per cent mortgage rates early in 2025 should restore buyer confidence and could boost transactions throughout the year.”
