UK Property Market Steady House Price Growth Remains at 14-Month High

The UK property market continues to show resilience as annual house price growth holds steady at 2.7% in the lead-up to the general election. Official data from the Land Registry House Price Index reveals that average property prices have increased by £8,000 over the past year, reaching £288,000 in June 2024.

Key Insights from the Latest Data

The 2.7% annual growth rate matches the previous month’s figure, marking a 14-month high for house price inflation. On a monthly basis, house prices rose by a modest 0.5%, indicating a stable but cautious market environment.

a. England: House prices increased by 2.4% over the year, bringing the average price to £305,000.
b. Wales: Prices saw a 1.8% rise, with the average now at £216,000.
c. Scotland: The Scottish market experienced a 4.3% increase, pushing prices to £192,000.
d. Northern Ireland: The region saw the strongest growth, with a 6.4% rise on a quarterly basis, bringing the average price to £185,000.

In England, all regions recorded annual growth, with Yorkshire and Humber leading the way with a 4.7% increase, followed by the North East at 4.2%. London remains the most expensive region, with average prices inching up by 0.6% to £523,134.

However, some areas faced minor setbacks. The East Midlands and the South West experienced slight monthly declines, with prices dipping by 0.5% and 1%, respectively.

Market Stability Welcomed by Industry Experts

Iain McKenzie, Chief Executive of The Guild of Property Professionals, commented on the data, highlighting the market’s steady performance. “The property market is holding steady, with house prices showing little month-on-month growth but a healthy annual rise. This balanced growth is positive for both buyers and sellers, preventing the market from overheating while still offering solid returns.”

McKenzie also noted the significance of controlled inflation and potential interest rate cuts. “If the Bank of England continues to reduce interest rates and inflation remains stable, it could provide a much-needed boost to the property industry.”

Prime London Market Shows Signs of Recovery

While the broader UK market remains stable, the prime London sales market has shown signs of recovery. Data from LonRes reveals a resurgence in transactions in July, with an 8.7% increase compared to the same period in 2023. However, prices across prime London fell by 4.9% on an annual basis, reflecting the challenges of a post-pandemic market.

Despite the dip in prices, sales activity in prime London saw its best month of the year, with transactions 23.7% above the pre-pandemic average for July. The number of properties going under offer also rose by 23.6% compared to July 2023, signaling renewed buyer interest.

Nick Gregori, Head of Research at LonRes, noted, “July is typically a quieter month for prime London sales, but this year has been different. Pent-up demand from the pre-election period has driven transactions higher than expected, raising questions about the sustainability of this recovery.”

Looking Ahead: Opportunities and Challenges

While the UK property market remains stable, the outlook for the rest of the year depends on several factors, including interest rates, inflation, and the ongoing supply-demand balance. As the market navigates these challenges, investors and buyers alike should stay informed and consider the evolving conditions.

For those looking to capitalize on opportunities within the UK property market, understanding these trends is essential. At Magnate Assets, we’re here to provide the insights and support you need to make informed investment decisions in this dynamic market.

Conclusion

The UK property market continues to demonstrate resilience, with steady growth and signs of recovery in key areas like prime London. As we move forward, keeping a close eye on market trends will be crucial for making the most of the opportunities available.

For more information and tailored advice on your property investment strategy, contact us at Magnate Assets today.