Average House Prices Up 2.2% As Market Steadies – ONS

18 September: July Marks Fifth Month Of Consecutive Rises

House prices rise 2.2% in the year to July
Fifth consecutive month of annual increases
Average home now worth £290,000

Annual house price inflation is running at 2.2% in the year to July, according to the latest data released by the Office for National Statistics (ONS), writes Jo Thornhill.

It’s a slight fall from the 2.7% annual increase recorded in the year to June. But it marked the fifth consecutive month of price rises, indicating continued stability in the market. Previously there had been eight consecutive months of annual price falls.

The monthly increase to house prices was a nominal 0.6% and takes the value of the average home across the country to £290,000.

The ONS index, which uses Land Registry data on sold properties, shows variations in the countries and regions.

The average house price in England is up by 1.6% annually and the average value of a home is now at £305,879.

In Wales prices rose 2% in the year to July to stand at an average value of £218,184, while prices in Scotland are up by 6% to £199,398 over the same time period.

Average prices increased in Northern Ireland by 6.4% in the year to the end of June 2024 (end of the second quarter of the year). It is the biggest annual change of any region and takes the value of a typical home in the country to £185,025.

Mark Harris, chief executive at mortgage broker SPF Private Clients, said: “With inflation sticking at 2.2% and expected to edge up in the autumn, it’s unlikely this will trigger a further rate cut from the Bank of England this month, although the markets still expect at least one further rate reduction before the end of the year.

“The good news for borrowers is that mortgage rates continue to soften, with Santander introducing a sub-4% two-year fix on the back of the lowest two-year Swap rates in two years. There are also plenty of five-year fixes at sub-4% for those looking for certainty over a longer period.

“While rock-bottom rates have long gone, these reductions are giving borrowers some comfort after a prolonged period of rising rates. Competition between lenders is likely to mean further gentle reductions in mortgage rates as they vie for new business.”

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said that most properties are getting a good number of viewings but realistic pricing remains paramount.

She said: “This isn’t a market where buyers are coming in with big offers, there are some exceptions to this but most people want to see properties that are reasonably priced and not waste their time. In a rising market, you can ask a high price and know applicants will view and offer but a flat market is very different.

“It looks unlikely that the Bank of England will cut rates this month but a November rate cut, while too late to impact the housing market this year, will help kickstart the 2025 market.”