The latest figures from the Office for National Statistics paint an interesting picture of the UK housing market. Let’s dive into what’s happening with house prices and rents across the country.
Despite gloomy predictions of double-digit falls, the housing market has shown its resilience. The average UK house price now stands at £290,000, marking a 2.2% increase over the past year. This growth rate has slowed a bit, down from 2.7% in June, suggesting the market might be stabilising.
Breaking it down by country:
England saw a modest 1.6% rise, with average prices hitting £306,000
Wales experienced a 2% increase, pushing prices to £218,000
Scotland led the pack with an impressive 6% surge, bringing average prices to £199,000
Renters have faced a challenging year, with private rents soaring by 8.4% in the 12 months to August. While this is still a significant jump, it’s a small improvement from the 8.6% increase seen in July. Even London, typically a hotspot for sky-high rents, is showing signs of cooling off.
The key factor seems to be falling mortgage rates. As rates continue to drop, we’re seeing increased demand in the property market. This is likely to push prices higher as we head into the final months of 2024.
However, it’s not all smooth sailing. The upcoming Autumn Budget could throw a spanner in the works, and the Bank of England’s decisions on interest rates will be crucial. While another base rate cut before year-end is possible, it’s not guaranteed, especially with inflation remaining stubborn.
The property market seems to be finding its feet after a period of volatility. While we shouldn’t expect any dramatic changes, the outlook is cautiously positive. For potential buyers, the more competitive mortgage rates that are now available could make this an attractive time to enter the market.
For renters, the slight cooling in rent increases offers a glimmer of hope, but affordability remains a significant challenge. Many are finding themselves caught between rising rents and the difficulty of saving for a deposit to buy.
In conclusion, the UK housing market is showing its resilience in the face of economic uncertainty. As we move towards 2025, keep an eye on mortgage rates, government policies, and inflation figures – they’ll all play a crucial role in shaping the market’s future.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Author:
Founder and mortgage and protection adviser in Albion Financial Advice
Dariusz Karpowicz is a seasoned adviser in the financial services industry. After gaining valuable experience working with an established broker, he founded his own practice, Albion Financial Advice. This firm is dedicated to assisting clients in acquiring properties and advising on various mortgage options. Born and raised in Gdańsk, Poland, Dariusz moved to the United Kingdom in 2006.
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