The average house price in the UK is £264,900 as of May 2024 (published in June 2024). Property prices are now at 0% inflation compared to a year ago. However, the average UK house price is set to rise by 1.5% by the end of the year.
The recent pick up in sales market momentum has continued over June, albeit at a slightly slower pace than the previous 2–3 months. New sales agreed are still running 8% higher than a year ago, and other key measures of market activity are also higher year-on-year.
However, there are signs that market activity is starting to slow as we approach the quieter summer period. Buyers and sellers who were at the start of the home-buying process when the election was called are more likely to have delayed their buying decisions until after the election. And this is adding to the slowdown in activity.
Sales agreed are down slightly month-on-month across all regions, led by the North East (-6%) and West Midlands (-5%). The overall stock of homes for sale continues to grow across all regions, albeit at a slower rate than recorded over recent months. There are still almost a fifth more homes for sale than a year ago.
Improving sales volumes over the first half of 2024 has led to a levelling in average house prices which is reflected in our house price index. All regions and countries of the UK have registered an increase in house prices on a month-on-month basis since January.
The annual rate of UK house price inflation is now static at 0% in May 2024, up from a low of -1.3% in November 2023, and +1.6% a year ago. House prices continue to register annual price falls across southern England at a slowing rate. But prices continue to increase across the rest of the UK by up to 3.3% in Northern Ireland.