House prices are on the rise - but only slowly for now

UK house prices edge up, with a modest annual rise of 1.1% bringing the average to £281,000. Inflation eases and interest rate cut speculations grow. The South East leads monthly gains, while London sees a drop. First-time buyer initiatives may influence future trends.

UK house prices are showing a slight increase this year, according to the latest figures from the Land Registry. There was an annual price rise of 1.1% in the year to April, meaning the average property in the UK is now valued at £281,000. Most of that rise, 0.9%, took place in March as inflation continued to fall and fears of further interest rate rises started to subside.

In England the April data shows that, on average, house prices have risen by 0.3% since March 2024. The annual price rise of 0.6% takes the average property value in England to £298,000. With the latest inflation figure now down to the government target of 2%, there’s growing speculation that the Bank of England will soon reduce interest rates, perhaps even as soon as August when its Monetary Policy Committee is next due to meet.

Both Labour and the Conservatives have promised to help first time buyers get on to the property market so that could further influence prices. The UK Property Transactions Statistics showed that in April 2024, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 90,000. This is 9.8% higher than a year ago (April 2023). Between March 2024 and April 2024, UK transactions increased by 4.6% on a seasonally adjusted basis.

The regional price data for England indicates that:

• the South East experienced the most significant monthly increase with a movement of 1.4%
• Yorkshire and the Humber saw the greatest monthly price fall, with a fall of -1.4%
• the South West experienced the greatest annual price rise, up by 1.8%
• London saw the lowest annual price growth, with a fall of -3.9%

Please contact us on 020 8290 0333 or info@judge-priestley.co.uk if you would like more information about the issues raised in this article or any aspect of buying and selling a home.

For further information on our Property services, please click here.