Average house prices have increased by 1.8%

UK house prices have increased for the first time in nine months and official data shows that rent price inflation has slowed.

According to the Office for National Statistics (ONS) in the 12 months to March the average house prices have increased by 1.8%.

The average house price in the UK has risen to £283,000 from £281,000 the month before.

Average house prices in England rose by 1% to £299,000 and properties in Wales saw an average increase of 1.3% to £214,000 and in the 12 months to March Scotland saw a 6.7% increase of £192,000.

ONS chief economist Grant Fitzner said, “Average UK house prices grew over the year for the first time since last summer.

“House prices saw an annual rise in every nation and region, except London and the South East, with Scotland seeing the fastest annual growth.”

Sarah Coles, head of personal finance at Hargreaves Lansdown, said, “Buyers have finally squeezed some growth out of the property market.

“They haven’t exactly set the market on fire, but it they’ve warmed it up enough to push prices into positive territory for the first time in almost a year.

“It’s a much more comfortable place to be buying right now.”

Fitzner added, “After two years of unprecedented and generally accelerating annual growth, private rental price rises showed tentative signs of easing.

“Most nations and English regions saw a slowdown, with a notable easing in London.”

Director of Benham and Reeves, Marc von Grundherr, said, “We’ve seen consistent growth in mortgage approval levels throughout 2024 so far and while house prices have stood firm, it was only a matter of time before this initial indicator of improving market health started to drive a stronger rate of growth.

The first annual increase since last summer suggests that this is now starting to materialise and while we expect a more settled year as a whole, there’s a good chance that a summer interest rate reduction could spark a house price boom, as buyers are buoyed by the first signs of improving borrowing affordability since March 2020.”

CEO of Yopa, Verona Frankish, added, “Despite the disappointment of yet another hold on the base rate, homebuyer activity has been building throughout the spring as many look to make their move in what is expected to be a far more positive year for the UK property market.

This growing positivity is now filtering through to sold price values and with a rate cut now expected in the coming months, we anticipate the property market to heat up over the summer, although we don’t share the same confidence when it comes to the British weather.”