U.K. House Prices Maintain 14-Month Peak Expansion - Should One Consider Property Purchase Now?

UK Property Market Shows Signs of Recovery, Suggests Expert

The UK property market may be on the brink of a significant turnaround, according to Tom Bill, head of UK residential research at Knight Frank. The market has seen a surge in activity in recent months, a trend that Bill suggests could make August a pivotal moment.

The increase in activity can be attributed to a combination of factors, including falling inflation, the Bank of England's interest rate cut, and the subsequent wave of mortgage rate reductions across the banking sector. These reductions have been sparked by the Bank of England's recent base rate cut from 5.25% to 5%.

The latest data from the Office for National Statistics (ONS) and the Halifax House Price Index supports this trend. The ONS released the June House Price Index, showing a 2.7% annual increase in average UK property values, while the Halifax House Price Index recorded annual growth of 2.3% in July.

Regionally, all English regions experienced annual house price growth in June, with Yorkshire and Humber leading the way with a 4.7% rise, followed by 4.2% in the North East. However, the East Midlands and the South West experienced monthly falls of 0.5% and 1% respectively.

Average house prices in Wales increased 1.8% to £216,000 in the 12 months to June 2024, while in Scotland, they rose 4.3% to £192,000 during the same period. Northern Ireland saw a 6.4% quarterly increase in average house prices, with the average now standing at £185,000.

First-time buyer property prices also rose, increasing 2.8% annually in June to £241,502.

Nicky Stevenson, managing director at national estate agent group Fine & Country, has also noted positive signs that the property market is heating up this summer. Stevenson stated that they are seeing a few positive signs, suggesting that the market could be on the path to recovery.

However, the data represents the period before the general election, where many buyers and sellers paused to see who formed the next government. With a new administration now in place, it remains to be seen whether this trend will continue.

It's worth noting that the average mortgage shelf-life is currently at just 17 days, meaning that the best deals may disappear fast. With several lenders now boasting sub-4% mortgage rates, it seems that now could be the ideal time for those considering a move to take advantage of these competitive rates.

Despite the positive signs, London remains the most expensive region, with average prices at £523,134. However, the region with the highest annual growth rate for average house prices in June 2024 was Dresden, with a +10.2% increase, surpassing other German metropolitan areas like Frankfurt and Hamburg.

In conclusion, the UK property market is showing promising signs of recovery, with many experts suggesting that August could be a turning point. With competitive mortgage rates and a surge in activity, it seems that now could be the perfect time for those considering a move to take action. However, it's important to remember that the market is dynamic and influenced by a variety of factors, so prospective buyers and sellers should keep a close eye on developments.

U.K. House Prices Maintain 14-Month Peak Expansion - Should One Consider Property Purchase Now?