Welcome to our April 2024 House Price Index blog. Here, we break down the latest data on the UK housing market.
From national house prices and changes, insights into different UK regions, to the latest on mortgage approvals and market sentiments, we’ll cover it all.
We’ll also review the findings from Halifax, Rightmove, and Zoopla to give you a rounded view of where the market stands today.
Whether you’re a buyer, seller, or just keeping an eye on the market, this blog will provide you with the essential insights you need.
Table of Contents
Halifax House Price Index Summary
Rightmove House Price Index Summary
Zoopla House Price Index Summary
UK House Price Index Summary - April 2024
Halifax House Price Index Summary
The Halifax House Price Index report for April 2024 provides a comprehensive overview of the UK's national housing market, including key data on house prices, regional market analysis, the rental market, and mortgage market insights.
Below are the summarized key points from the report:
National House Price Indices
Average House Price: £288,949
Monthly Change: +0.1%
Quarterly Change: +0.8%
Annual Change: +1.1%
Regional Market Analysis
Northern Ireland: Remains the strongest performing region with house prices up by +3.4% annually, though this slowed from +4.1% in March. Properties now cost an average of £192,502.
North West: Continues to see strong growth, up by +3.3% on an annual basis to £231,599.
Scotland: House prices rose +1.5% year-on-year, standing at £204,579.
Wales: Annual property price growth slowed to +1.1% in April, from +1.9% in March, with the average home now costing £218,775.
London: Remains the most expensive region in the UK to buy a home, with an average price of £539,336. Prices in the capital have been relatively flat over the last year, up by just +0.1%.
Eastern England: Recorded the biggest decline of -1.1%, with homes selling for an average of £329,723, a drop of £3,541 over the last year.
Mortgage Market Insights
HMRC Property Transactions: UK home sales increased in March 2024, with seasonally adjusted (SA) residential transactions totaling 84,200 – up by 1.4% from February’s figure of 83,040 (up 19.6% on a non-SA basis). Quarterly SA transactions (January 2024 – March 2024) were approximately 1.5% higher than the preceding three months (October 2023 - December 2023). Year-on-year SA transactions were 6.5% lower than March 2023 (8.6% lower on a non-SA basis).
Mortgage Approvals: The number of mortgages approved to finance house purchases increased in March 2024 by 1.4% to 61,325. Year-on-year, the March figure was 20.1% above March 2023.
Market Sentiment: The RICS Residential Market Survey for March 2024 showed steady improvements in buyer demand and new listings. New buyer enquiries posted a third consecutive net balance positive reading of +8% (up from +4% last month), with agreed sales broadly stable with a net balance of -5% (from -4%). New instructions reported a fourth consecutive net balance reading of +13% (from +20%).
Additional Insights
House prices have held steady in April 2024, reflecting a market finding its footing amidst higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability. This is evidenced by greater numbers of mortgage applications and the highest level of mortgage approvals in 18 months.
Recent research indicates that buyers, particularly first-time buyers, are adjusting expectations and targeting smaller properties to compensate for higher borrowing costs. This trend is reflected in property prices, with the value of flats rising most sharply, closing the 'growth gap' on larger properties that has existed for most of the last four years.
Overall, the housing market displays resilience, with modest price increases expected over the course of 2024, contingent on the anticipated downward moves in the Bank of England base rate later this year. The North-South divide remains evident, with stronger performance in the North and price falls more common in the South.
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Rightmove House Price Index Summary
The Rightmove House Price Index for May 2024 provides a detailed overview of the UK housing market, offering insights into national house price indices, regional market analysis, the rental market overview, and mortgage market insights.
Here's a summary of the key data from the report:
National House Price Indices
Average Asking Price (May 2024): £375,131, marking a +0.8% monthly increase from April 2024.
Annual Change: +0.6% compared to the previous year.
Historical Context: The 0.8% price growth is notable for setting a new record, driven by the momentum of the Spring selling season. However, prices are only 0.6% higher than this time last year, reflecting a price-sensitive market.
Regional Market Analysis
Sales Agreed: There was a +17% increase in sales agreed during the first four months of 2024 compared to the same period last year.
Buyer Demand: The demand is particularly strong in the top-of-the-ladder sector (four-bedroom detached and five-bedroom plus properties), where prices have risen by an average of 1.3% annually.
North East: The region showed the strongest price growth, reflecting its relatively lower average house prices.
London Boroughs: Varied annual price changes ranging from -3.3% in Hackney to +6.6% in Hammersmith and Fulham.
Mortgage Market Insights
Mortgage Rates: Mortgage rates have remained elevated, with the average rates reflecting the prolonged higher cost of borrowing since the Bank of England's base rate increases.
Market Sensitivity: Despite stable mortgage rates, the market remains sensitive, with a notable impact on buyer affordability and activity.
Additional Insights
Market Recovery: The beginning of 2024 saw increased market activity, with more sales agreed and a rebound in the sales pipeline, indicating a recovery from the market slowdown in 2023.
Completion Times: The average time from agreeing a sale to legal completion is now 154 days, highlighting ongoing challenges in the transaction process.
Pricing Strategy: Properties priced correctly from the outset sell significantly faster, taking an average of 32 days to find a buyer compared to 112 days for those that require a price reduction.
Zoopla House Price Index Summary
The Zoopla House Price Index for April 2024 provides an in-depth analysis of the UK housing market, focusing on national house price indices, regional market analysis, and mortgage market insights.
National House Price Indices
Average House Price in March 2024: £264,500, reflecting a +0.1% increase from the previous month and a -0.2% decrease compared to a year ago.
Year-on-Year Change: A decrease of £410 for all property types, with specific declines in detached houses (-1.0%), flats (-0.7%), and slight increases in terraced houses (+0.6%).
Regional Market Analysis
Regional Price Changes: House prices have fallen in 5 regions, led by the East of England with a -1.7% decrease. However, prices are rising in regions like Northern Ireland (+4.4%), Scotland (+1.9%), and Wales (+0.7%).
Market Recovery: The market is showing signs of recovery, with a 12% increase in property sales agreed compared to the previous year, and a rebound in sales volumes expected to continue into the latter half of 2024.
Mortgage Market Insights
Mortgage Rates: Mortgage rates are expected to remain between 4% and 5% for much of 2024, reflecting the end of ultra-low mortgage rate offerings due to increased financing costs for lenders.
Housing Market Activity: There has been a 32% increase in mortgage approvals in February 2024 compared to the previous year, indicating improved market activity and a return to pre-pandemic levels of mortgage approvals.
Pricing Sensitivity: Sellers are adjusting to higher mortgage rates, with fewer asking price reductions than a year ago, although price sensitivity remains high among buyers.
Additional Insights
Three-Tier Housing Market: The last 18 months have established a distinct three-tier housing market characterized by differences in house price inflation, largely driven by mortgage rates and cost-of-living pressures.
Future Outlook: The housing market is anticipated to experience 10% more sales in 2024 than in 2023, with total sales expected to reach 1.1 million, driven by increased supply and sustained demand.
Conclusion
After examining the May 2024 House Price Indices from Halifax, Rightmove, and Zoopla, it's clear the UK housing market is showing signs of recovery and stability.
With house prices steadily rising and increased sales and buyer demand, the market is on a positive trajectory. However, mortgage rates and market sensitivity remain crucial factors influencing buyer decisions.
The regional analysis shows varied performance across the UK, highlighting the importance of understanding local market dynamics.
As we move further into 2024, it will be interesting to see how these trends develop, impacting buyers, sellers, and the overall market landscape.
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