House prices are still rising, but at a slower pace than this time last year. The average UK house price in June 2024 was £288,000, a rise of 2.7% annually.
This latest data from the ONS UK House Price Index for June 2024 shows that while prices are still increasing, the pace of growth has slowed down. This suggests that the market might be stabilising after several years of fluctuations.
Here’s a breakdown of the key findings:
Key takeaways:
- Average UK house price: £288,000
- Annual price change: 2.7% (compared to 2.7% in May 2024)
- Monthly price change: 0.5% (compared to 0.5% between May 2023 and June 2023)
Where are house prices rising the fastest?
Scotland takes the lead with the highest annual house price growth, with prices surging by 4.3% in the year to June 2024. In contrast, London experienced a more modest annual increase of 0.6%.
Here’s a breakdown of the annual price changes by nation:
- England: 2.4%
- Wales: 1.8%
- Scotland: 4.3%
- Northern Ireland: 6.4% (for the year to Quarter 2 2024)
What’s driving the trends?
Several factors are contributing to the current state of the UK housing market:
- Buyer demand is weakening: According to the Royal Institution of Chartered Surveyors (RICS), enquiries from potential buyers have decreased for the third consecutive month.
- Fewer properties are coming onto the market: RICS also reports that the number of new properties being listed for sale has slowed down, suggesting a potential shortage of supply.
- The market is considered stable: The Bank of England reports that the housing market is stable in terms of both the number of transactions and the level of demand.
- Mortgage approvals remain steady: The Bank of England also highlights that mortgage approvals for house purchases, which indicate future borrowing, have remained largely unchanged at 60,000 in June 2024.
Sales volumes are down compared to last year
The number of house sales in England has dropped significantly compared to the same period last year.
Here’s a comparison of sales volumes:
- England: 22,027 transactions in April 2024 compared to 38,699 in April 2023 (a 24.9% decrease)
- Scotland: 7,646 transactions in April 2024 compared to 7,040 in April 2023 (a 10.8% increase)
- Wales: 1,329 transactions in April 2024 compared to 2,190 in April 2023 (a 23.7% decrease)
First-time buyers still face challenges
The average price paid by first-time buyers in Great Britain reached £241,502 in June 2024. This is a 2.8% increase compared to the same time last year.
Other interesting facts:
- Most popular price bracket in England: £175,000 to £199,999
- New build properties commanded higher prices: The average price of a new build property in April 2024 was £398,520, a significant 17.3% increase compared to the previous year.
What does this mean for you?
If you’re thinking of buying or selling a property, it’s essential to stay informed about the latest market trends. This data suggests a cooling market, which could present opportunities for buyers. However, it’s always advisable to consult with a financial expert to discuss your individual circumstances.