Zoopla House Price Index: August 2024
House prices rise across the UK as London veers into positive territory. But homeowners looking to sell must be wary of overpricing.
The average house price in the UK is £266,400 as of July 2024 (published in August 2024).
Property prices are now at 0.5% inflation compared to a year ago. However, the average UK house price is set to rise by 2.5% by the end of the year.
Key figures
|
Average house price in May 2024 |
Average house price in June 2024 |
Average house price in July 2024 |
Year-on-year change (£) |
Year-on-year change (%) |
|
|
All property |
£265,400 |
£265,600 |
£266,400 |
+£1,200 |
+0.5% |
|
Detached houses |
£447,400 |
£449,000 |
£450,100 |
-£2,040 |
-0.5% |
|
Flats |
£191,000 |
£191,700 |
£191,900 |
-£370 |
-0.2% |
|
Semi-detached houses |
£270,100 |
£271,200 |
£272,100 |
+£1,840 |
+0.7% |
|
Terraced houses |
£233,500 |
£234,300 |
£235,200 |
+£2,520 |
+1.1% |
Housing market activity stronger than last year
All key measures of sales market activity are higher than they were in 2023. This has largely been supported by economic growth and rising consumer confidence.
Buyer demand for homes is a fifth higher than this time last year. Additionally, new sales agreed are almost a quarter higher, building on the increased momentum in sales from earlier in the year. Mortgage rates have fallen to an average of 4.5% for a 5-year fixed rate at 75% loan-to-value.
Sellers continue to bring homes to market at an above-average rate. Many of these sellers are also buyers, which explains why the number of sales agreed continues to increase.
The stock of homes for sale continues to increase and now stands at a 7-year high of 33 homes per agent, giving buyers even more choice. A higher supply of homes will keep headline price inflation in check over 2024 and into 2025. Serious sellers must price realistically to agree a sale within a reasonable time.
No material impact from August base rate cut
The long-awaited cut in the base rate in August was welcome news for the wider economy and consumer sentiment, but it has had no material impact on levels of buyer demand compared to the underlying trend over recent weeks.
The real reason buyer demand for homes is 20% higher than last year is down to a fall in demand over summer 2023, which was in response to the spike in mortgage rates.
You May Also Enjoy
Restoring the Past: How to Expertly Repair Wooden Windows with PM Windows Ltd
Slight rise in house prices as market maintains strength
Industry Reacts to Bank Rate Cut
Rightmove reaction to Bank Rate cut
Zoopla crowns Glenrothes the most popular affordable town for families as one in three fear being priced out of their ideal area
