The average UK house price ncreased by +1.5% month on month from £288,533 in July 2024 to £292,924 in August 2024, while the latest annual change for August 2024 sits at +2.8%, latest government data from the Office of National Statistics reveals.
The latest UK figures show consecutive increases in price over the last six months, from March 2024 (£279,017 and +0.3% MoM) to August 2024 (£292,924 and +1.5% month on month).
When considering annual change, the UK figures show consecutive growth for the last six months, from March 2024 (279,017 and +0.4% YoY) to August 2024 (£292,924 and +2.8% YoY).
RIGHT DIRECTION
Ed Phillips, Lomand Chief Executive, says: “A sixth consecutive month of positive house price growth demonstrates that the UK property market is very much heading in the right direction, boosted by a growing level of buyer confidence and an increased willingness to transact.
“Whilst interest rates remain a factor, we’re likely to see further cuts before the year is out and this will only strengthen the momentum that has been building across the market in 2024.”
GREEN SHOOTS
Marc von Grundherr, Director of Benham and Reeves, adds: “Summer may have come and gone, but the green shoots of increased buyer activity that have been sprouting for much of the year are now starting to blossom into robust transaction volumes and consistently positive rates of house price growth.
“Whilst we’re unlikely to see any sales market incentives delivered in this month’s Autumn Statement, the housing market is likely to march on undeterred and we’re set for a very strong end to the year, despite the usual seasonal lull that comes with the Christmas period.”
CONTINUE TO CLIMB
Nicky Stevenson, Managing Director at national estate agent group Fine & Country, says: “As we head into autumn, many experts anticipate an increase in market activity. Indicators suggest house prices will continue to climb, driven by rising demand.
“Adding to the positive outlook, inflation unexpectedly dropped to 1.7% in the year to September, the lowest rate in over three years. With inflation now below the Bank of England’s 2% target, there is growing optimism for another interest rate cut next month.
“The pace of growth will depend on several key factors. The upcoming October budget could present challenges, particularly if tax increases strain personal finances and dampen demand.
“There have also been calls for stamp duty reforms in the Autumn Budget, proposing refunds for buyers of energy-inefficient homes. This initiative aims to boost demand for such properties and stimulate the market by encouraging energy upgrades and more transactions.
“The housing market’s resilience will be tested in the coming months, but many experts remain cautiously optimistic that it can navigate these challenges without significant disruption as we approach the end of 2024.”
SENTIMENT BOOST
Verona Frankish, Chief Executive of Yopa, says: “August brought the first interest rate cut in over four years and it’s clear that this boost to buyer sentiment has had an almost immediate impact on the UK property market, with house prices rising notably throughout the month.
“Not only have we seen consistent improvements on a monthly basis, but this is the six month in a row that house prices have increased on an annual basis.
“This longer term metric is a far more reliable measure with respect to the returning health of the UK property market and bodes very well for the remainder of the year.”
DEFYING EXPECTATIONS
Iain McKenzie, Chief Executive of The Guild of Property Professionals, says: “The property market has defied expectations once again, with prices rising 0.5% in August compared with July.
“This brings annual house price growth to 2.8%, significantly higher than many analysts predicted earlier this year.
“While the rate of growth has moderated from the double-digit increases we saw during the pandemic boom, the housing market is proving remarkably resilient in the face of higher interest rates and cost of living pressures.
“The average UK house price now stands at £293,000, up over £8,000 compared to this time last year.”
HOLDING BACK
But he adds: “Affordability concerns and high interest rates – which are affecting the availability of competitive mortgage offers – are still holding back a full recovery of the sector.
“This is always a busy time of the year for estate agents. Buyers are often in a rush to sign on the dotted line so that they can complete and move in before Christmas. The increase in footfall should be enough to keep house prices stable for the rest of the year.
“There is a lot of anticipation to see what the Autumn Budget has in store for the property industry. After a tough couple of years for agents in some parts of the UK, we would like to see some measures in the Budget to incentivise people to buy.
“We know already that government initiatives such as affordable housing programs, zoning regulations, and building codes can influence the supply of housing and, consequently, prices. If played right, this could be positive news for buyers and sellers alike.”
MORE CHOICE
Harriet Scanlan, lettings manager at Richmond estate agency Antony Roberts, says: “There is more choice of rental property for tenants with an increase in stock coming to market. The supply and demand balance still swings in favour of the landlord but tenants are now afforded more choice.
“We are seeing a strong steady flow of applicants looking to rent, which means landlords are enjoying little-to-no void periods.
“Landlords are still achieving slightly higher rents year on year when reletting property to the same tenants, but not as steep as the increase in 2022/23.
“We are seeing some hesitation at the higher end of the market, with an increase in stock levels at £10,000-plus a month.”
LANDLORDS LEAVING
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Interestingly rents are still rising strongly which shows demand continues to outpace supply but as we have also found in our offices there is an affordability ceiling which tenants are finding increasingly difficult to break.
“Unfortunately, too many good landlords are leaving the sector in response to concerns about increasing tax and regulatory issues. Prospects of an improvement in choice and substantial softening in rents therefore seems unlikely for the time being at least.”
UPBEAT
Nathan Emerson, Chief Executive of Propertymark, says: “It is extremely upbeat to see the year continue with consistent growth.
“The overall performance of the housing market remains a key indicator of wider economic health, and it’s encouraging to see more people are demonstrating they have the confidence and affordability to approach the buying and selling process.
“There are still sizeable challenges ahead to ensure long term stability within the marketplace, especially on the back of an ever-growing population.
“It would be encouraging to see indications that the upskilling required to deliver the near two million homes promised across this parliamentary term is underway to ensure an adequate supply is under construction to meet the current levels of demand.”
