Average UK house prices increased by 2.7 percent to £288,000 in the 12 months to June 2024, according to the Office for National Statistics (ONS).
This marks a rise of around £8,000 since the same period last year, which experts have said could spell a “buoyant” autumn selling season.
Anthony Codling, managing director of RBC Capital Markets, said: “House prices rose again in the year to June by £8,000 to £288,000 on average and have risen for five months in a row.
“As the cost of living pressures have eased and wages started to rise, it seems that households are willing to commit more of their hard-earned cash to buying a home, and with mortgage rates starting to fall and more bank rate cuts likely to come we believe that house prices will continue to rise in the second half of the year.”
He added: “We sense that the market will enjoy a buoyant autumn selling season and that housebuilders will have a good second half and start 2025 with very healthy order books.”
Mapping out the averages across the UK, house prices increased in England to £305,000 (2.4 percent), in Wales to £216,000 (1.8 percent), and in Scotland to £192,000 (4.3 percent), in the 12 months to June 2024.
Holly Tomlinson, financial planner at Quilter said today’s data presents a picture of a UK property market that is “gradually picking up steam”, despite facing challenging economic conditions.
Ms Tomlinson noted: “This steady, though modest, growth suggests that while the market is on an upward trajectory, it is doing so cautiously, reflecting the broader economic uncertainties at play highlighted by the slight rise in inflation just this morning.”
Experts have noted that the “real pain” in the property market is being felt by tenants due to rising rental costs.
According to the ONS, average private rents in the UK increased by 8.6 percent in the 12 months to July 2024, remaining unchanged from the previous year.
In this period, average rents increased to £1,319 (8.6 percent) in England, £748 (7.9 percent) in Wales, and £965 (8.2 percent) in Scotland. In Northern Ireland, rents rose by 10 percent in the 12 months to May 2024.
Within England, rent inflation was highest in London at 9.7 percent and lowest in the North East at 6.1 percent.
Patricia McGirr, Founder of Repossession Rescue Network commented: “While house prices are holding up fairly well, the real pain is being felt by tenants due to soaring rental costs.
“For those already teetering on the edge financially, this is more than just an increase, it’s a pressure cooker ready to explode. I see the human toll behind these numbers daily. Families are being squeezed from all sides.
“House prices are inching out of reach for many, and rents are escalating to unsustainable levels. It’s a cruel irony that the roof over your head is becoming a financial burden too heavy to bear for many. This isn’t just an economic challenge; it’s a social crisis in the making.
“Behind every statistic is a family struggling to keep their home and landlords facing untenable costs. Recent figures showing landlord repossessions on the rise shed light on the difficulties being faced by many tenants.”
Stephen Perkins, managing director at Yellow Brick Mortgages, added: “Demand in recent weeks has increased markedly, with house prices remaining firm and looking like they will start to creep up again.
“Whilst mortgage rates are falling, to the relief of homeowners and first-time buyers, rents could remain high or even continue to increase due to demand outstripping supply. It’s incredibly tough for tenants right now.”
