House Price Watch Aug 2024
House prices increased again this month and agreed sales are reported to be up almost 25% year on year. Buyer demand increased sharply in August coinciding with the first base rate cut in four years. There continues to be a steady supply of new homes for sale and buyers remain price sensitive with affordability pressures still present which should help to keep house price inflation in check.
What’s happening nationally
House prices are up on average +0.2% over the past month and +3% over the past year.
Some indices report house prices up this month: Halifax (+0.3%), Land Registry reporting July figures (+0.6%), while Nationwide reported a drop of -0.2% and Rightmove a drop in asking prices of -1.5%. Annual house price growth is reported to be up by all the indices (ranging from a low of +0.8% by Rightmove to a high of +4.3% by Halifax).
Indices based on:
Land Registry – registered property transactions in July.
Nationwide & Halifax – mortgage valuations in August.
Rightmove – asking prices posted on Rightmove in August.
*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 | +0.6% | +2.2% |
| Nationwide | -0.2% | +2.4% |
| Halifax | +0.3% | +4.3% |
| Rightmove | -1.5% | +0.8% |
| Average change | +0.2% | +3.0% |
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%), Scotland (+3.1%), Wales (1.1%) and the East Midlands (+1.3%).
House prices have also increased over the past year in all areas with the exception of London (-0.4%) and the largest in Northern Ireland (+6.4%) and Scotland (+6%). Within England, house price shifts range from a low of -0.4% in London to a high of 3.8% in the North East.
Average house prices remain highest in London (£521K) and lowest in the North East (£165K).
| 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 90.6K transactions in July 2024, largely unchanged from June (-0.6%) and 7% higher than July 2023 (when transactions were at a 10 year low).
Demand increased again in August, the biggest rise since October 2021 and new instructions from sellers also increased.
Time to sell has improved in recent months from a peak of 78 days in January to 60 days in August. This is still up slightly from a year ago (57 days last August).
How busy is the market?
- Not busy
- Normal
- Very busy
- Transactions steady month on month
- Total transactions in July 2024 90.6K
- -0.6% from last month
- +7% from July last year
Homes for sale vs homebuyers
- Good availability of homes
- Normal
- Shortage of homes
- Buyer enquiries up(+15% RICS); biggest rise in demand since Oct 2021
- Seller enquiries up (+6% RICS); new instructions up
- Average stock per agent 62; steady with 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 57 days last August, Rightmove)
What the experts say
Rightmove - agent's view
“Average new seller asking prices see a seasonal drop of 1.5% this month. August has seen a monthly decline in prices from July for the last 18 years, with this month’s fall in line with the long-term average. The first Bank of England rate cut for four years has led to an immediate upturn in buyer activity: The number of potential buyers contacting estate agents about homes for sale has jumped from 11% to 19% since the 1st of August compared to the same time a year ago. Rightmove raises its 2024 forecast from -1% to +1% due to positive market data and trends compared to the much more subdued 2023. The number of sales being agreed is now 16% ahead of the near-peak-mortgage-rate period of a year ago. The number of new sellers coming to market is 5% ahead of last year as confidence to move grows.”
Nationwide
“While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging). Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
Zoopla (Hometrack)
“All key measures of sales market activity are higher than 2023 supported by economic growth and rising consumer confidence. The long-awaited cut in the base rate in August was welcome news for the wider economy and consumer sentiment, but it has had no material impact on levels of buyer demand compared to the underlying trend over recent weeks. Buyers remain price-sensitive as their purchasing power has been eroded by higher mortgage rates. This is slowly being offset by faster income growth but there is further to go to fully repair affordability. We find that 1 in 5 homes listed for sale in August has had an asking price reduction of 5% or more to attract more buyer interest. This is above average, but lower than the 23% high recorded last autumn.”
Halifax
“Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years. With market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”
RICS
“The August 2024 RICS Residential Survey results show an improvement in sales market activity over the month, supported by the recent (modest) softening in mortgage interest rates. Moreover, respondents foresee the market gradually gaining further impetus moving forward, even if the near-term outlook for monetary policy remains relatively tight compared with much of the post global financial crisis era.”
