UK sees sixth month of positive growth in house prices

The average UK house price has increased by +1.5% MoM from £288,533 in July 2024 to £292,924 in August 2024, while the latest annual change for August 2024 sits at +2.8%.

The latest UK figures show consecutive increases in price over the last six months, from March 2024 (£279,017 and +0.3% MoM) to August 2024 (£292,924 and +1.5% MoM).

When considering annual change, the UK figures show consecutive growth for the last six months, from March 2024 (279,017 and +0.4% YoY) to August 2024 (£292,924 and +2.8% YoY).

Richard Harrison, head of mortgages at Atom bank, said: “The markets continue to expect at least one more (Bank of England base rate) cut before the end of the year.

“We saw activity pick up after the first base rate cut in four years, and a second cut will only further boost interest among buyers, as mortgage rates become more attractive.”

Emily Williams, director of research at Savills, said: “The market has been boosted over the summer by easing mortgage costs, and increased certainty in the aftermath of the general election.

“Meanwhile, today’s inflation data, which is the lowest for three years, is encouraging. It suggests that we’re likely to see another cut to the base rate by the end of the year, which should further boost housing market activity by widening the pool of buyers and their budgets.”

Lomond CEO, Ed Phillips, said, “A sixth consecutive month of positive house price growth demonstrates that the UK property market is very much heading in the right direction, boosted by a growing level of buyer confidence and an increased willingness to transact.

Whilst interest rates remain a factor, we’re likely to see further cuts before the year is out and this will only strengthen the momentum that has been building across the market in 2024.”

Director of Benham and Reeves, Marc von Grundherr, added, “Summer may have come and gone, but the green shoots of increased buyer activity that have been sprouting for much of the year are now starting to blossom into robust transaction volumes and consistently positive rates of house price growth.

Whilst we’re unlikely to see any sales market incentives delivered in this month’s Autumn Statement, the housing market is likely to march on undeterred and we’re set for a very strong end to the year, despite the usual seasonal lull that comes with the Christmas period.”