Welcome to our February 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.
We’ll also review the findings from 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 - Feb 2024
Halifax House Price Index Summary
The Halifax House Price Index report for February 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: £291,699
Monthly Change: +0.4%
Quarterly Change: +2.9%
Annual Change: +1.7%
Regional Market Analysis
Northern Ireland: Strongest performing region with house prices increasing by +5% annually, with an average price of £195,956.
North West: Positive growth of +4.4% annually to £232,128.
North East: +4.2% annual increase.
Wales: +4.1% annual increase.
London: Highest average house price at £536,996, with a +1.5% annual increase, marking the first positive annual growth since January 2023.
Eastern England: Experienced the most significant monthly price drop compared to other UK regions, with an average price of £329,927, a -0.8% change, dropping £2,794 since February 2023.
Mortgage Market Insights
HMRC Property Transactions: January 2024 saw an increase in UK home sales with 82,000 seasonally adjusted residential transactions, up by 1.9% from December's figure of 80,500 (down 19.9% on a non-SA basis). Year-on-year transactions were 11.9% lower than January 2023.
Mortgage Approvals: Bank of England figures for January 2024 showed a 7.2% increase in mortgages approved for house purchases to 55,227, which is 40.2% above January 2023.
Market Sentiment: The RICS Residential Market Survey for January 2024 indicated slight improvements with new buyer enquiries balance improving to +7% from -3% in December, and agreed sales improving to +5%.
Additional Insights
House prices have risen for the fifth consecutive month as of February 2024, suggesting a relatively stable start to the year, aligning with increased housing activity such as mortgage approvals. However, the market remains uncertain with potential for a slowdown anticipated due to challenges in raising deposits and affording sizeable mortgages for new entrants to the property ladder.
Assemble a high-performing property portfolio with NestInisghts. Our platform offers 11 user-friendly tools, empowering you to make data-driven decisions. Direct your resources towards the highest yielding real estate opportunities today: Check it out for free!
Rightmove House Price Index Summary
The Rightmove House Price Index for February 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 (March 2024): £368,118, marking a +1.5% monthly increase from February 2024.
Annual Change: +0.8% compared to the previous year.
Historical Context: The 1.5% price growth is the biggest in 10 months, with average asking prices still £4,776 below the May 2023 peak.
Regional Market Analysis
Sales Agreed: +13% increase compared to the same period last year.
Buyer Demand: +8% compared to the previous year, led by the less mortgage-rate-sensitive larger homes sector and London.
London Boroughs: Showed varied annual price changes ranging from -3.2% in Camden to +5.6% in Richmond upon Thames and Hammersmith and Fulham.
Mortgage Market Insights
Mortgage Rates: The average 5-year mortgage rate increased to 4.84% from 4.64% five weeks prior, indicating a rise in borrowing costs.
Market Sensitivity: Rightmove's real-time data showed a tempering in buyer demand following a lacklustre Spring Budget, indicating market sensitivity to external events and policy changes.
Additional Insights
Market Recovery: A positive start to the year with stronger sales numbers and buyer demand, suggesting a recovery from a muted 2023.
Market Dynamics: Increased activity is skewed towards buyers less sensitive to higher mortgage costs, with the market remaining sensitive to pricing and external events.
Time to Find a Buyer: The longest at this time of year since 2019, with attractively priced properties being quickly purchased, while over-optimistically priced sellers take longer to find buyers.
Zoopla House Price Index Summary
The Zoopla House Price Index for February 2024 provides an in-depth analysis of the UK housing market, focusing on national house price indices, regional market analysis, the rental market overview, and mortgage market insights.
National House Price Indices
Average House Price in January 2024: £263,600, with no change from December 2023 but a -0.5% decrease compared to a year ago.
Year-on-Year Change: A decrease of -£1,200 for all property types.
Regional Market Analysis
Regional Price Changes: House prices have fallen in 5 regions, led by the East of England with a -2.1% decrease. However, prices are rising in 7 regions, including Wales (+0.3%), Scotland (+2.2%), and Northern Ireland (+4.3%).
Scotland: The only region which has remained in positive growth over the last year.
Market Recovery: A slowdown in the rate of house price falls, with a -0.5% change in the last year, indicating a recovery trend.
Mortgage Market Insights
Mortgage Rates: Expected to stay between 4% and 5% for much of 2024, with recent trends indicating an end to lower mortgage rate offerings due to increased financing costs for lenders.
Housing Market Activity: A 15% increase in property sales agreed compared to the previous year, alongside an 11% uplift in buyer demand and a 21% increase in homes for sale, highlighting improved market activity at the start of 2024.
Pricing Sensitivity: Sellers are adjusting to higher mortgage rates, with fewer asking price reductions than a year ago, although still above the average, indicating ongoing price sensitivity 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 February 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.
Explore our suite of property analytics tools at NestInsights. They're free and accessible without an account. Get started today at NestInsights.