House Prices Climb Higher – But is The Market Cooling Down?
The average UK house price hit £293,000 in August 2024, an increase of 2.8% compared to last year, according to the latest official figures.
House prices continue to rise – but at a slower pace
While prices are still going up, the pace of growth is slowing down. The 2.8% rise is lower than the revised figure of 1.8% we saw in July. This could be a sign that the market is finally starting to cool after months of rapid growth.
Here’s a breakdown of the figures:
- Average UK house price: £293,000
- Annual price change: 2.8%
- Monthly price change: 1.5%
Regional differences
The North West of England experienced the highest annual house price inflation at 4.6%, while the South West saw the lowest at just 0.8%.
Here’s how other areas fared:
- England: £310,000 (2.3% annual increase)
- Wales: £223,000 (3.5% annual increase)
- Scotland: £200,000 (5.4% annual increase)
- Northern Ireland: £185,000 (6.4% annual increase in the year to June 2024)
What’s driving the market?
The Royal Institution of Chartered Surveyors (RICS) reports that buyer enquiries and agreed sales both increased in August. This suggests that demand for homes remains strong.
However, the Bank of England’s Agents’ summary suggests that the market is stable in terms of both transactions and demand.
What does this mean for buyers and sellers?
For sellers, it’s still a good time to be on the market. Demand is strong, and prices are still rising, albeit at a slower pace.
For buyers, it might be a good time to enter the market as the rapid price growth seems to be slowing down.
Sales Volumes and Other Interesting Facts
- HMRC figures show that there were an estimated 90,000 residential property transactions in August 2024. This is 5.4% higher than August 2023.
- The average price of a detached house in the UK is now £443,355.
- First-time buyers are now paying an average of £246,576 for a property.
A note on the data
It’s worth noting that these figures are provisional and could be revised in the coming months.