Welcome to our June 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 - June 2024
Halifax House Price Index Summary
The Halifax House Price Index report for June 2024 provides a detailed analysis of the UK's housing market, including national house prices, regional trends, and mortgage market insights.
National House Price Indices
Average House Price: £288,455
Monthly Change: -0.2%
Quarterly Change: -0.5%
Annual Change: +1.6%
Regional Market Analysis
Northern Ireland: Remains the strongest performing region with house prices up by +4.0% annually. The average property price in Northern Ireland is now £192,457.
North West: Continues to see robust growth, up by +3.8% on an annual basis to £231,351.
Scotland: House prices increased by +1.6% year-on-year, reaching an average of £204,663.
Wales: Annual property price growth stands at +2.7%, with the average home now costing £220,197.
London: Remains the most expensive region in the UK, with an average price of £536,306. Prices in the capital have risen by +0.9% over the last year.
Eastern England: Recorded a decline of -0.9%, with homes selling for an average of £328,747, a decrease of £3,541 over the past year.
Mortgage Market Insights
Mortgage Affordability: Mortgage affordability continues to be a significant challenge for both homebuyers and those coming to the end of fixed-term deals. The issue is expected to ease gradually through lower interest rates, rising incomes, and restrained house price growth.
Market Stability: The housing market remains stable, supported by a shortage of available properties rather than a surge in buyer demand. This stability is reflected in the minor monthly price fluctuations and consistent annual growth.
Additional Insights
House prices in the UK remained relatively flat for the third consecutive month in June 2024, with a slight monthly decline of -0.2%, equating to less than £500 in cash terms. This stability highlights a subdued market where the scarcity of available properties continues to underpin higher prices despite subdued buyer demand.
Looking ahead, the market is expected to remain balanced, with modest price increases anticipated through the rest of 2024 and into 2025. The potential for lower mortgage rates could further support market stability and buyer confidence.
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Rightmove House Price Index Summary
The Rightmove House Price Index for June 2024 provides a detailed overview of the UK housing market, highlighting key data on national house price indices, regional market analysis, and market insights.
National House Price Indices
Average Asking Price (June 2024): £375,110, reflecting a 0.0% change from May 2024.
Annual Change: +0.6% compared to the previous year.
Historical Context: The average asking price decreased slightly by £21 from May 2024, following the familiar seasonal pattern of recent years and remaining flat overall.
Regional Market Analysis
Sales Agreed: The number of sales agreed has stayed steady, with a 6% increase over the same period last year.
Buyer Demand: Buyer demand remains stable, currently 5% higher than last year.
Northerly Regions: Stronger price growth is seen in less expensive and more northerly regions, with five of the six cheapest regions reaching new price records.
East of England and London: These higher-priced regions lag behind, experiencing this month’s only regional price falls.
Market Insights
Election Impact: The majority of buyers and sellers have continued their plans despite the election being called. However, there is a slight drop in the number of new sellers, especially at the top end of the market.
Mortgage Rates: Stubbornly high mortgage rates continue to stretch affordability. The average 5-year fixed mortgage rate is now 5.04%, up from 4.94% in January.
Affordability Trends: First-time buyer monthly mortgage payments are based on the average asking price of a typical first-time buyer home, reflecting current mortgage rates and average weekly earnings.
Zoopla House Price Index Summary
The Zoopla House Price Index for June 2024 offers a comprehensive analysis of the UK housing market, focusing on national house price indices, regional market dynamics, and insights into the mortgage market.
National House Price Indices
Average House Price (May 2024): £264,900, marking a slight increase from £264,700 in April 2024.
Monthly Change: +0.1%
Annual Change: 0.0% compared to the previous year.
Regional Market Analysis
Northern Ireland: Continues to lead with a robust annual house price growth of +3.3%. The region benefits from relatively lower average prices and high demand.
North West: Demonstrates a healthy annual price increase of +2.8%, driven by strong buyer interest and affordable housing options.
Scotland: Registers an annual growth of +1.9%, with the average house price now at £193,300.
Wales: Shows steady growth with a +1.4% increase year-on-year, bringing the average house price to £189,200.
London: Experiences a slight decline in annual house prices, down by -0.4%, with the average price at £489,300. This reflects the ongoing adjustment in the high-value market segments.
South East England: Records a minor decrease of -0.2%, indicating a stabilizing market with average prices around £344,100.
Mortgage Market Insights
Mortgage Rates: Expected to remain between 4% and 4.5% throughout 2024, influenced by base rate adjustments from the Bank of England.
Market Activity: Despite the current flat house price inflation, the market shows signs of resilience. Sales agreed are up by 8% compared to the same period last year, indicating strong buyer interest and stable market conditions.
Additional Insights
Market Sentiment: Home buyers and sellers have largely shrugged off the impact of the election campaign, with demand and sales agreed both higher than the previous year. This suggests confidence in the market's stability and potential growth.
Future Outlook: Zoopla forecasts that UK house prices are set to rise by 1.5% by the end of 2024, as the market continues to adjust and align with rising household incomes. The overall sales volume for the year is projected to reach 1.1 million, reflecting a well-supported housing market with increasing supply and sustained demand.
Conclusion
The June 2024 UK House Price Index reveals a complex yet stable housing market.
Nationally, house prices show marginal fluctuations, with the Halifax, Rightmove, and Zoopla indices all reflecting slight variations in monthly and annual changes.
Regionally, Northern Ireland and the North West continue to lead in price growth, driven by strong buyer demand and relatively affordable housing options. In contrast, higher-priced regions like London and the East of England exhibit either minimal growth or slight declines, highlighting regional disparities.
Mortgage market insights point to ongoing challenges with affordability, exacerbated by elevated mortgage rates. However, the market's resilience is evident as buyer demand remains robust and sales activity continues to recover from the previous year's slowdown.
Overall, the housing market is expected to remain balanced through the rest of 2024, with modest price increases anticipated. The potential for lower mortgage rates could further support market stability and buyer confidence, fostering a positive outlook for both buyers and sellers.
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