The UK housing market has shown robust growth in August 2024, with the average property price reaching £293,000, according to the latest ONS House Price Index released today.
This marks a significant 2.8 per cent annual increase, up from 1.8 per cent in July and some countries in the UK have seen bigger improvements than others.
The overall monthly price change was even more striking, with a 1.5 per cent rise compared to July 2024. This uptick in prices has been accompanied by positive trends in buyer enquiries, agreed sales, and mortgage approvals, suggesting a stable and potentially strengthening market.
Regional variations remain notable, with some areas experiencing more substantial growth than others.
Homes across the country have become more valuable
PAThe average UK house price of £293,000 in August 2024 represents an £8,000 increase from the previous year. On a seasonally adjusted basis, prices rose by one per cent between July and August 2024.
This growth outpaces the same period in 2023 when prices increased by just 0.5 per cent month-on-month.
The Royal Institution of Chartered Surveyors (RICS) August 2024 UK Residential Market Survey reported positive trends in new buyer enquiries and agreed sales. Most parts of the UK now show either stable or modestly positive house price trends.
However, Scotland and Northern Ireland stand out, with prices rising more firmly in these regions.
House price changes by country
- Northern Ireland: 6.4 per cent increase to £185,000
- Scotland: 5.4 per cent increase to £200,000
- Wales: 3.5 per cent increase to £223,000
- England: 2.3 per cent increase to £310,000
These figures highlight the diverse nature of the UK property market, with Northern Ireland and Scotland experiencing the most substantial growth. Despite having the lowest percentage increase, England maintains the highest average house price among the four nations.
Within England, regional variations in house price growth were evident. The North West led the way with a 4.6 per cent increase in the 12 months to August 2024, showcasing the strongest annual house price inflation among English regions.
In contrast, the South West experienced the lowest annual inflation, with prices rising by just 0.8 per cent over the same period.
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There is overall stability in the housing market
GETTYThe Bank of England's Agents' summary of business conditions for Q2 2024 reported overall stability in the housing market, both in terms of transaction numbers and demand levels.
The housing market's positive momentum is further evidenced by an increase in mortgage approvals. According to the Bank of England's Money and Credit August 2024 release, mortgage approvals for house purchases rose to 64,900 in August, the highest level since August 2022.
This uptick in approvals, along with the increase in new buyer enquiries and agreed sales reported by RICS, suggests growing confidence in the market.
HM Revenue & Customs data also showed a 5.4 per cent year-on-year increase in residential property transactions valued at £40,000 or more, reaching 90,000 in August 2024.