Published: 01/07/2024 By Litchfields
The average property price now is £264,900, the same as it was in May 2023House prices in the UK are beginning to rise, as they did in all sections of the country during the previous quarter. House price inflation is no longer negative and stands at 0% year on year, meaning that the average house price is now £264,900, the same as a year ago.
Sales market momentum has continued in the run-up to the election, with demand for homes up 6% from this time last year. The number of sales agreed is also up 8%, and it is estimated that 75% of the 1.1 million sales expected for this year have already occurred or are in the pipeline. It is encouraging that sales are increasing despite higher borrowing prices and it demonstrates increased pragmatism on the part of sellers and renewed, cautious optimism among purchasers.
The property market is still adjusting to rising borrowing costs, and the summer slowdown is on its way, which will limit activity. The timing of the first drop in the base rate is critical, as it will increase market mood and business activity. Momentum in the sales market has persisted throughout June, however, despite the slightly slower pace than the previous 2-3 months as the market enters the quieter summer season.
Since January, housing prices in all regions and countries of the UK have risen month after month. But price increases are unlikely to accelerate in the coming months. However, on average, they are expected to be 1.5% higher by the end of 2024.
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