UK house prices have climbed an average of 4.3 per cent in the year to August 2024, marking the strongest performance since November 2022.
This uptick has pushed the average property cost to £292,505, just £1,000 shy of the record high set in June 2022, according to the latest Halifax House Price Index, released today.
Experts attribute this growth partly to the base effect of weaker prices a year ago and a change in interest rates.
Head of mortgages at Halifax Amanda Bryden noted: “Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates.”
Easing interest rates has helped the market recover
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House price changes by country
Regional variations in house price growth remain significant across the UK. Northern Ireland continues to lead, recording a robust 9.8 per cent annual increase, with the average property now valued at £201,043.
Wales follows with a strong 5.5 per cent growth, pushing average prices to £224,433.
Scotland saw a more modest rise of 1.7 per cent, with typical properties costing £205,144.
In England, the north west emerged as the strongest performer, with prices up four per cent to £232,917.
London, despite slower growth of 1.5 per cent, maintains its position as the most expensive UK property market, with average prices at £536,056.
These regional disparities highlight the complex nature of the UK housing market, with some areas experiencing significant growth while others see more modest increases.
Experts in the property market have expressed optimism about the recent trends. CEO of Yopa Verona Frankish commented: “The property market really picked up the pace in August with respect to the annual rate of house price growth seen and there’s no doubt that this improving market sentiment has been spurred by the first cut to interest rates since 2020.”
Director of Benham and Reeves Marc von Grundherr agreed, adding: “House prices continue to climb on both a monthly and annual basis and so far, it’s been a very solid summer for the UK property market, with both buyer and seller activity levels continuing to improve.”
However, CEO of Octane Capital Jonathan Samuels cautioned:
“Whilst positive for homebuyers, interest rates remain considerably higher than we’ve seen in recent years, so it’s certainly a case of not running before we can walk and not overborrowing prematurely based on hopes of future rate cuts.”
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House prices have increased the most in Northern Ireland
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Despite the positive trends, Amanda from Halifax highlighted ongoing challenges: “Affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.”
Nevertheless, the market’s resilience is evident, with mortgage approvals at their highest level in almost two years.
The expert added: “With market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”
Source Agencies
