Welcome to our May 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 - May 2024
Halifax House Price Index Summary
The Halifax House Price Index report for May 2024 provides a detailed overview of the UK housing market, highlighting key statistics on house prices, regional market performance, and insights into market activities.
National House Price Indices
Average House Price: £288,688
Monthly Change: -0.1%
Quarterly Change: -0.3%
Annual Change: +1.5%
Regional Market Analysis
North West: The strongest performing region with house prices increasing by +3.8% annually. The average house price in this region is now £232,258.
Northern Ireland: Continued strong growth with a +3.2% increase, slightly down from +3.3% in April.
Scotland: House prices rose by +1.9% year-on-year, with an average price of £204,952.
Wales: Annual property price growth slowed to +0.7% in May from +1.1% in April, with the average home costing £219,483.
Eastern England: Recorded the largest decline in annual growth at -0.8%, with average house prices now at £329,853.
London: Remains the most expensive region in the UK with an average price of £536,821, marking a slight annual increase of +0.2%.
Market Insights
The stability in house prices in May 2024 reflects a resilient market despite economic uncertainties. The annual growth rate of +1.5% suggests a steady recovery trend compared to the previous year. The minimal monthly change of -0.1% indicates a relatively balanced market, with the typical UK home now costing £288,688.
Mortgage Market Insights
HMRC Property Transactions: UK home sales increased in April 2024, with seasonally adjusted residential transactions totaling 90,430, up by 4.6% from March 2024. Quarterly transactions were 5.9% higher than the preceding three months and 9.8% higher year-on-year.
Mortgage Approvals: The number of mortgages approved for house purchases slightly decreased by 0.2% in April 2024 to 61,140, but this figure was 25.8% higher than April 2023.
Market Sentiment: The RICS Residential Market Survey for April 2024 indicated a continued increase in new listings, with average stock levels at a three-year high. New buyer enquiries slightly declined, while agreed sales moved back into positive territory.
Additional Insights
The data from May 2024 suggests that the UK housing market is experiencing a period of relative stability. The combination of strong wage growth and improved economic confidence has helped maintain property prices. Despite high borrowing costs, the market has shown resilience with modest annual growth. The North-South divide remains evident, with stronger performance in the North and price declines 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.
National House Price Indices
Average Asking Price (May 2024): £375,131
Monthly Change: +0.8%
Annual Change: +0.6%
The average asking price of properties coming to the market reached a new record, driven by the momentum of the Spring selling season. Despite this increase, 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: This 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.
Market Insights
The stability in house prices in May 2024 reflects a resilient market despite economic uncertainties. The annual growth rate of +1.5% suggests a steady recovery trend compared to the previous year. The minimal monthly change of -0.1% indicates a relatively balanced market, with the typical UK home now costing £288,688.
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 activity in early 2024 has seen increased sales agreed and a rebound in the sales pipeline, indicating a recovery from the market slowdown in 2023. The completion process, however, remains lengthy, averaging 154 days from agreeing a sale to legal completion. 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 May 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 April 2024: £264,300
Monthly Change: No change from March 2024
Annual Change: -0.1% (£210 decrease)
House prices have remained steady month-on-month, but there has been a slight annual decline of 0.1%, reflecting the ongoing adjustments in the housing market.
Regional Market Analysis
Northern Ireland: Continues to show strong growth with a +3.2% annual increase.
Scotland: House prices rose by +1.9% year-on-year, with an average price of £204,952.
Wales: Annual property price growth slowed to +0.7%, with the average home costing £219,483.
North East: Recorded the highest annual price growth among English regions at +2.2%.
London: Average house prices in the capital have remained relatively flat with a marginal increase of +0.2% year-on-year, standing at £536,821.
Eastern England: The region experienced the largest annual decline of -0.8%, with average house prices now at £329,853.
Market Insights
The Zoopla House Price Index highlights a nuanced picture of the UK housing market, with regional disparities becoming increasingly evident. While some areas, particularly in the North, continue to experience price growth, others, especially in Southern England, are seeing modest declines.
Mortgage Market Insights
Mortgage Rates: Mortgage rates are expected to remain between 4% and 5% throughout 2024, reflecting the end of the ultra-low mortgage rate era.
Housing Market Activity: Mortgage approvals increased by 32% in April 2024 compared to the previous year, indicating a recovery in market activity.
Pricing Sensitivity: Sellers are adjusting to higher mortgage rates, with fewer asking price reductions compared to a year ago, although price sensitivity among buyers remains high.
Additional Insights
The UK housing market is characterized by a three-tier structure, influenced by regional variations in house price inflation and mortgage rates. The highest number of homes for sale in the last eight years suggests a shift towards greater market equilibrium. This increased supply is expected to keep house price inflation in check for the remainder of 2024.
Conclusion
In summary, the UK housing market for May 2024 exhibits a blend of stability and regional variation.
The Halifax House Price Index indicates a stable market with modest annual growth and notable regional differences. The Rightmove House Price Index reveals record-high asking prices driven by strong demand, especially in higher-end properties, while also highlighting the challenges of lengthy transaction times. The Zoopla House Price Index underscores regional disparities, with some areas experiencing growth and others seeing declines, alongside a stable national average house price.
Overall, the market is adapting to higher mortgage rates, with sellers adjusting their strategies to meet buyer expectations. The increased number of homes for sale and strong regional performances in the North suggest a balanced outlook.
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