Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
UK Property Market Update
UK House prices unfortunately fell last month, with March’s prices dropping by .2%, after two consecutive months of increases. Despite the decrease, the annual rate of house price growth ticked higher to 1.6% in March, up from 1.2% the month before. The average house price rose slightly from £260,420 in February to £261,142 in March.
Activity has picked up from the end of 2023 but remains relatively subdued with the number of mortgage approvals for house purchases in January sitting about 15% below pre-pandemic levels. This can be attributed to the impact higher interest rates had on the affordability of homes on the market. Mortgage rates are below the heights seen mid last year but they remain well above pre-pandemic lows.
Looking ahead
Things appear to be looking up. Cost-of-living pressures are easing, inflation is coming back down to the target rate, and consumer sentiment is improving. In recent months, surveyors have reported an increase in new buyer enquiries and new instructions to sell. Plus, income growth is continuing to outpace house price growth allowing housing affordability to gradually improve.
Annual rate of change improves across all regions
The data from Q1 for regional house prices indicates that while some regions recorded annual price declines, the annual rate of change improved across all areas.
Northern Ireland reigns supreme, remaining the best-performing area with prices up 4.6% year-on-year. The North boasts the biggest improvement in annual house price growth, jumping from -.8% in Q4 of 2023 to 4.1% in the first quarter of 2024. This performance also earned the region the title of the best-performing English region.
The northern England region experienced a 1.7% price rise while southern England reported a 0.3% year-on-year drop. London remained the best-performing southern region, with annual price growth bouncing back to 1.6%. The weakest region was the South West, which was down 1.7% year-on-year.
Prices were up .4% year on year across England, while Wales saw a 1.2% rise year-on-year, and Scotland saw annual house price growth rise to 3.7%.
Stay in the know
If you’re planning to buy or sell property, check back monthly for our regular update on the nation’s property prices and contact one of our advisers for personalised advice.
Figures quoted from Nationwide House Price index – March 2024.
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