The Halifax Price Index for August reveals a continued upward trend in UK house prices, with a 0.3% increase following a 0.9% rise in July. This brings the average property price to £292,505, the highest since August 2022. Annually, house prices have grown by 4.3%, the strongest rate of growth since November 2022. This sharp increase is partly due to a base effect, as prices were relatively weaker at the same time last year.
Regionally, Northern Ireland experienced the highest annual growth, with house prices rising by 9.8%. Wales followed with a 5.5% increase, while Scotland saw a more modest 1.7% rise. The North West of England recorded a 4.0% increase in property prices. London remains the most expensive region, with average house prices of £536,056, marking a 1.5% annual rise.
The housing market has benefitted from increased activity, supported by easing interest rates that have improved confidence among potential buyers. Mortgage approvals in July reached their highest level in nearly two years, showing a rise in demand.
The potential for further interest rate cuts may offer some relief, with the housing market likely to experience modest growth for the rest of 2024.
While UK home sales slightly dipped in July 2024, the quarterly data shows a 5.1% increase, signaling resilience in the market. Mortgage approvals also rose by 2.3% from the previous month and were 26.5% higher than in July 2023, contributing to a positive outlook as the year progresses.
