House Price Watch July 2024
House prices increased again this month and agreed sales are reported to be up 15% year on year. Buyer demand increased in July for the first time in four months and the first base rate cut is expected to provide a further boost to buyer confidence and market activity in the second half of the year. There continues to be a steady supply of new homes for sale which should help to keep house price inflation in check.
What’s happening nationally
House prices are up on average +0.5% over the past month and +2.4% over the past year.
Most of the indices report house prices in July to be up. Halifax (+0.8%), Land Registry (+0.5%), Nationwide (+0.3%). Rightmove reported a drop of -0.4%. Annual house price growth is reported to be up by all the indices (ranging from a low of +0.4% by Rightmove to a high of +2.7% by Land Registry).
Indices based on:
Land Registry – registered property transactions in June.
Nationwide & Halifax – mortgage valuations in July.
Rightmove – asking prices posted on Rightmove in July.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
| Index reports: | Monthly change | Annual change |
|---|---|---|
| Land registry | +0.5% | +2.7% |
| Nationwide | +0.3% | +2.1% |
| Halifax | +0.8% | +2.3% |
| Rightmove | -0.4% | +0.4% |
| Average change | +0.5% | +2.4% |
House prices in your area
House prices increased in most areas of the UK over the past month with the biggest rises in Northern Ireland (+3.6%), Yorkshire & Humber (+2.7%), the North East (1.5%), London (+1.2%) and the South East (+1.0%).
House prices have also increased over the past year in all areas with the smallest annual increase in London (+0.6%) and the largest in Northern Ireland (+6.4%).
Average house prices remain highest in London (£523K) and lowest in the North East (£165K).
In terms of monthly house price shifts by type of property, detached homes were up +2.8%, semi detached properties up +4.0%, terraced properties were up +3.1% and flats/ maisonettes up by +0.5% according to June Land Registry data.
| UK Region | Average price £ | Monthly change | Annual change |
|---|---|---|---|
| England | |||
| Nothern Ireland | |||
| Scotland | |||
| Wales | |||
| North West | |||
| Yorkshire and The Humber | |||
| North East | |||
| West Midlands | |||
| East Midlands | |||
| South West | |||
| East of England | |||
| South East | |||
| London |
| UK City | Average price | Annual change |
|---|---|---|
Market Monitor
There were 91.4K transactions in June 2024, unchanged from May and 8% higher than June 2023.
Demand increased for the first time in 4 months and new instructions from sellers also nudged upwards.
Time to sell has improved in recent months from a peak of 78 days in January to 60 days in July. This is still up from a year ago (55 days last July).
How busy is the market?
- Not busy
- Normal
- Very busy
- Agreed sales reported to be up 15% year on year
- Total transactions in June 2024 91.4K
- -0.5% from last month
- +8% from June last year
Homes for sale vs homebuyers
- Good availability of homes
- Normal
- Shortage of homes
- Buyer enquiries up(+2% RICS); up for the first time in 4 months
- Seller enquiries up (+2% RICS); new instructions broadly stable
- Average stock per agent 62; up from 61 last month (incl under offer/ Sold STC Rightmove)
Average speed of sale
- Fast
- Normal
- Slow
- 60 days to find a buyer down from peak of 78 days in January (up from 55 days last July, Rightmove)
What the experts say
Rightmove - agent's view
“Average new seller asking prices drop by 0.4% this month, a bigger July drop than usual, as new sellers try to cut through the distractions of the General Election, sporting events and summer holiday season with a tempting price. The number of sales being agreed remains encouraging at 15% above the same period a year ago, when mortgage rates were approaching their peak. Current market expectations are that the first Bank of England Base Rate cut may be as soon as August, which would be a boost for most home-movers and bodes well for the Autumn market.”
Nationwide
“UK house prices increased by 0.3% month on month in July. Housing market activity has been holding relatively steady in recent months with the number of mortgages approved for house purchase at around 60,000 per month. While this is still c.10% below the level prevailing before the pandemic struck, it is still a respectable pace given the higher interest rate environment. Investors expect the Bank Rate to be lowered modestly in the years ahead, which, if correct, will help to bring down borrowing costs. However, the impact is likely to be modest. As a result, affordability is likely to improve only gradually through a combination of wage growth outpacing house price growth (which is expected to remain fairly flat), with some support from modestly lower borrowing costs.”
Zoopla (Hometrack)
“The outlook for the housing market continues to improve with more sales and buyers paying a greater proportion of the asking price. The supply of homes for sale continues to grow and is 16% higher than a year ago. More supply and choice is supporting sales growth but will also keep price inflation in check. The first base rate cut will boost market sentiment and market activity over the second half of the year.”
Halifax
“In July, UK house prices increased by +0.8% following three relatively flat months. Last week’s Bank of England’s Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder. Against the backdrop of lower mortgage rates and potential further Base Rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”
RICS
“The July 2024 RICS Residential Survey results signal a largely stable trend in market activity, with some of the negativity found previously diminishing slightly. Moreover, likely supported by the modest easing in mortgage interest rates in recent weeks, respondents do now anticipate a meaningful pickup in sales volumes moving forward.”
