UK Housing Market: Property Prices on Track to Rise 1.5% in 2024 | RWinvest Skip to content

UK Housing Market: Property Prices on Track to Increase 1.5% by End of 2024

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    House Price Growth is Largely Flat But Set to Rise by Year’s End

    The overall average property price in the UK has mainly displayed flat growth, with inflation at 0% compared to a year ago. In cash terms, the average price has increased by £110. The average house price now stands at £264,900 as of May 2024. Average national growth is up from a low of -1.3% in November 2023.

    However, there are regional differences in price growth, and the overall picture looks set to improve as well. Prices are on track to be 1.5% higher by the end of 2024, which is £3900 in cash terms.

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    North West Price Growth Performs Best of English Regions

    In the last quarter, house prices have increased across all regions. However, the annual rate of growth is still negative in Southern England, while the rest of the UK is displaying price increases. The highest growth in England has been observed in the North West, with a 1.5% annual rise.

    Zoopla states that the housing market has shown resilience over the last year even when faced with very high mortgage rates, spiking well over 5% in October 2022 and again in summer 2023. Rather than sizable price falls, there has been a more noticeable decline in the number of sales, which went down 23% over 2023.

    Sales levels are rising despite higher borrowing costs. 2024 still looks on track for 1.1 million sales by the end of the year, which is 10% higher than last year while still being below the 20-year average. According to Zoopla, this suggests renewed cautious confidence among buyers.

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      Future Interest Rates Will Have Biggest Impact on Market Going Forward

      The pick-up in sales momentum continued over June but slowed down slightly compared to the two months previously. Key measures of market activity are higher year-on-year, suggesting that the general election hasn’t had much impact on the market.

      New sales agreed are 8% higher than a year ago but down slightly month-on-month for all regions. The overall stock of property available for sale is growing, and there are still a fifth more homes for sale than last year.

      The Zoopla House Price Index suggests that the short-term forecast for the sales market heavily depends on the change in mortgage rates. If the base rate is cut over the summer and into the autumn, this is likely to boost market sentiment and sales activity significantly.

      Read more about the UK property market with our guides, highlighting topics such as property investments and investment property for sale in Liverpool.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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