Your monthly UK housing market update – including sold and asking prices, RICS surveyor sentiment and predictions for the year ahead.
HM Land Registry – Sold Prices
The UK housing market is experiencing slow but steady growth, with sold price inflation holding at 2.7% for the year up to June 2024. The average sold price is now £288,000, an increase of £8,000 from a year ago.
In June, England’s average sold price reached £305,000 (+2.4%), Wales rose to £216,000 (+1.8%), and Scotland saw a rise to £192,000 (+4.3%). Northern Ireland led with a 6.4% increase, bringing the average to £185,000.
Month-to-month, prices edged up 0.5% from May to June. The market remains balanced, with steady demand and stable transaction levels noted by the Bank of England.
Approximately 91,000 homes were sold in June 2024 (8% more than the same time last year), and mortgage approvals held steady at around 60,000.
Rightmove – Asking Prices
August has seen the usual drop in asking prices, down -1.5% to £367,785, as the market takes a breather for the summer. This seasonal drop happens every year, as people focus more on family vacations than buying homes.
Despite this summer slowdown, the market is buzzing thanks to recent rate cuts from the Bank of England, which led to slightly lower mortgage rates and increased buyer interest. Viewing requests were up by 19% compared to last year. Agreed sales and the number of new sellers are also up by 16% and 5%, respectively.
With all this positivity, Rightmove adjusted its forecast for 2024. Instead of predicting a decline, they now expect asking prices to rise by about 1%. There are still some uncertainties, like the upcoming Budget and the possibility of more rate cuts, but as long as mortgage rates keep dropping, the outlook for the autumn is bright.
RICS – Chartered Surveyor Sentiment Survey
As reported in the latest RICS survey, the housing market is holding steady, with a hint of optimism.
Buyer demand has stabilised, with new inquiries rising slightly to +2% in July, up from -6% in June. Sales activity is also looking up, with a small improvement to -2% (rising from -13% and -6% in May and June).
Surveyors are becoming more confident about the future, with a net balance of +30% expecting sales activity to pick up in the next three months – the most optimistic reading since January 2020. This rises to an even more upbeat +45% at the twelve-month horizon.
While house prices are still under pressure, with a slight drop to -19% for July, the outlook over the next year is more upbeat. Nearly half of respondents (+46%) believe prices will increase in twelve months, especially in areas like Northern Ireland, the East Midlands and London.
Zoopla – Housing Market Outlook
Zoopla’s latest take on the housing market is cautiously optimistic, with signs of more activity and better price trends.
Sellers should remain realistic about pricing, as buyers are still cautious due to higher mortgage rates. Even though rates are slowly coming down and incomes are growing, affordability remains a challenge.
That said, the market is more balanced now than in the past five years. Lower mortgage rates and a better overall economic situation are encouraging more people to buy and sell. Zoopla expects mortgage rates to hover above 4% for the rest of the year, which should keep the market moving.
Looking ahead to 2025, the market’s health will depend a lot on mortgage rates and how household incomes grow. So while things are looking up, buyers and sellers must keep an eye on the bigger economic picture.
Express Index
For a full, comprehensive breakdown of current property market activity. Visit our Express Index here
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