The average house price across the UK rose again in the year to April – up 1.1%, according to Office for National Statistics recent House Price Index for April 2024.
The average house price was £326,248 yet average price for first-time buyers hit £235,851. New-build price rises continued to outstrip existing properties. Up 15.3% compared to a fall of 1.3%.
UK private rents were up 8.7% in the year to May (a slight easing from 8.9% a month earlier). In England, rent inflation was highest in London at 10.1% and lowest in the North East at 6.1%. Commenting on the data, Nathan Emerson CEO of Propertymark said:
“Since the start of the year, we have seen healthy progress within the housing sector, with consumers finding a sensible balance of affordability and market confidence. With the tide now decisively turning regarding inflation, the attention is now firmly focused on when the Bank of England feels confident enough to start lowering the base rate. Once this journey starts to happen and when the political landscape simmers down following the general election, we should see a stable market for the foreseeable future.”
Iain McKenzie, CEO of The Guild of Property Professionals, said that the “modest but healthy” levels of growth “seems to be the picture of house prices currently”. He continued:
“…bringing some much-needed stability to the property market. This period of calm is an opportunity for both buyers and sellers alike. Sellers can benefit from continued strong buyer demand, while a more balanced market may offer better value for buyers, particularly those looking to own their first home.
There are clear differences on a regional basis, with areas like the North West seeing strong growth of nearly 4%, compared with London’s decrease by a similar amount. While mortgage approvals dipped slightly in April, the overall number of transactions remains higher year-on-year, suggesting a market with continued momentum.
The next government needs to work together with industry stakeholders to address the ongoing challenges facing the industry. Policies that increase housing supply, enhance affordability, and promote transparency will benefit buyers, sellers and estate agents.”
Malcolm Webb, Technical Director, Legal & General Surveying Services, said:
“While we wait for the sun to make an appearance, it is encouraging to see the mortgage market heating up. Inflation has met the 2% target, and despite tangible affordability challenges, we are still seeing strong demand across the board, particularly from first-time buyers. But make no mistake – in the current market, getting independent expert advice is the best way to filter out the noise and find the best product for your needs and circumstances.”
