Good news for sellers as house prices continue to rise across the UK, but are things looking brighter for first-time buyers too?
The average price of a house in the UK reached £285,000 in May 2024, a jump of £6,000 compared to the same time last year. This represents a 2.2% increase annually, showing a significant acceleration from the 1.3% rise seen in April, according to the latest figures from the ONS.
Here’s a breakdown of the average house prices in May 2024:
- England: £302,000 (2.2% annual increase)
- Wales: £216,000 (2.4% annual increase)
- Scotland: £191,000 (2.5% annual increase)
- Northern Ireland: £178,000 (4% annual increase in Q1 2024)
Could this upward trend continue?
Experts seem to think so! The Bank of England predicts house prices will either hold steady or see modest growth in the coming months. This positive outlook is partly down to lower mortgage rates making it a little easier for buyers to get on the property ladder.
Regional Differences
While prices are generally on the up, some areas are experiencing faster growth than others. Yorkshire and the Humber took the lead with a 3.9% annual increase, while London lagged behind at just 0.2%.
What’s driving these price hikes?
Demand from buyers has dipped slightly, particularly in the South East and South West of England. However, this has been offset by a rise in the number of properties coming onto the market.
Positive Signs for First-Time Buyers?
The average price paid by first-time buyers in May 2024 was £238,284, an 1.8% increase compared to last year. While this is still a significant amount, the gap between first-time buyer prices and those paid by former owner-occupiers (£332,133) suggests there might be some light at the end of the tunnel for those hoping to get a foot on the property ladder.
Key Takeaways for Buyers and Sellers
- Sellers: It’s a good time to consider selling your property as prices continue to climb.
- Buyers: Be prepared for competition, especially in areas with high demand.
- First-time buyers: While prices are still high, there are signs that the market might be becoming slightly more favourable.
Important Note: These figures are based on provisional data and could be subject to change.