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According to the latest official data, house prices look set to break free from months of stagnation as they jumped by 2.8 per cent in a year.
According to the Office for National Statistics house price index, the average home was worth £293,000 in August 2024 - about £1,000 more than in July 2024.
Average house prices increased in England to £310,000 (2.3 per cent), in Wales to £223,000 (3.5 per cent), and in Scotland to £200,000 (5.4 per cent), in the 12 months to August 2024.
The ONS says this is the sixth consecutive month that prices have increased after eight months of decreases.
The recent increases have added around £7,000 to house prices in a year.
Property values are rising the fastest in the North East (+4.6 per cent) and Yorkshire and The Humber (+4.4 per cent). The slowest rises are in the South West (+0.8 per cent), the East and London (each +1.4 per cent).
| Region\Country | Price | Monthly change | Annual change |
|---|---|---|---|
| East Midlands | £250,229 | 1.40% | 2.10% |
| East of England | £344,190 | 1.00% | 1.40% |
| London | £531,212 | 2.20% | 1.40% |
| North East | £166,032 | 1.50% | 1.70% |
| North West | £225,248 | 2.40% | 4.60% |
| South East | £384,804 | 1.40% | 1.60% |
| South West | £320,774 | -0.30% | 0.80% |
| West Midlands | £255,102 | 1.10% | 2.60% |
| Yorkshire and The Humber | £219,433 | 2.70% | 4.40% |
| England | £309,572 | 1.60% | 2.30% |
| Scotland | £199,971 | 1.20% | 5.40% |
| Wales | £222,925 | 2.60% | 3.50% |
Source: Land Registry
Mortgage lenders also reported a rising housing market in September.
The Halifax posted an annual house price rise of 4.7 per cent - the fastest rate since November 2022. The bank says the average home is now priced at £293,399, up almost £900 in a month and just falls short of the record £293,507 set in June 2022.
Head of Mortgages Amanda Bryden said: "Market conditions have steadily improved. Mortgage affordability has eased thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with mortgages agreed up over 40 per cent in the last year and now at their highest level since July 2022."
September data from Nationwide showed house prices up 3.2 per cent in 12 months, but a lower average home price - £266,094.
Nationwide's chief economist Robert Gardner said: "Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters. These trends have helped to improve affordability for prospective buyers and underpinned a modest increase in activity and house prices, though both remain subdued by historical standards."