Annual home worth progress accelerated in August, marking six months in a row of year-on-year rises.
The typical UK home worth elevated by 2.8% to £293,000 within the 12 months to August, based on the Workplace for Nationwide Statistics (ONS).
Annual progress ticked up from 1.8% within the 12 months to July 2024.
It was the sixth month in a row of annual worth will increase, following eight months of annual decreases.
Common home costs elevated in England to £310,000 (2.3% annual progress), in Wales to £223,000 (3.5%), and in Scotland to £200,000 (5.4%), within the 12 months to August 2024.
The typical home worth for Northern Eire was £185,000 within the second quarter of 2024, up 6.4% yearly.
The North West was the English area with the best annual home worth inflation, at 4.6%. Annual home worth progress was lowest within the South West, at 0.8%.
ONS figures additionally confirmed that in September 2024, the common personal hire in Britain was £1,295 per 30 days – a £101 or 8.4% annual improve.
Sarah Coles, head of private finance, Hargreaves Lansdown, stated: “Given the continued exodus of landlords, renters face the double distress of preventing over the scraps after which paying a fortune for them.”
Separate ONS figures launched on Wednesday confirmed Client Costs Index (CPI) inflation slowed to 1.7% in September, from 2.2% in August.
The slowdown was pushed by a pointy hunch in petrol costs and decrease airfares.
Myron Jobson, senior private finance analyst, interactive investor, stated the inflation figures put “strain on the Financial institution of England to chop borrowing charges at its assembly subsequent month, which might lead to cheaper mortgage charges, though the other is probably going for financial savings charges”.
Karen Noye, a mortgage professional at Quilter, stated: “Many lenders are actually providing offers with charges sitting across the 4% mark, and we might see this regularly start to decrease if the Financial institution continues on its path of fee cuts.
“Decrease mortgage charges would translate to extra reasonably priced financing choices for potential consumers, which ought to enhance purchaser confidence and assist buoy the market additional.”
Richard Harrison, head of mortgages at Atom financial institution, stated: “The markets proceed to count on not less than another (Financial institution of England base fee) lower earlier than the top of the yr.
“We noticed exercise decide up after the primary base fee lower in 4 years, and a second lower will solely additional enhance curiosity amongst consumers, as mortgage charges turn out to be extra engaging.”
Emily Williams, director of analysis at Savills, stated: “The market has been boosted over the summer time by easing mortgage prices, and elevated certainty within the aftermath of the overall election.
“In the meantime, immediately’s inflation information, which is the bottom for 3 years, is encouraging. It means that we’re more likely to see one other lower to the bottom fee by the top of the yr, which ought to additional enhance housing market exercise by widening the pool of consumers and their budgets.”
Malcolm Webb, danger director, Authorized & Common Surveying Companies, stated: “These newest home worth figures present the housing market is holding robust as we gear up for the ultimate stretch of 2024.
“Mortgage charges stay extra aggressive than only a few months in the past and progressive merchandise – some providing as much as six occasions your earnings – are preserving debtors engaged.”
Mark Harris, chief government of mortgage dealer SPF Non-public Shoppers, stated: “Mortgage charges have began rising in latest days on the again of upper swap charges (that are utilized by lenders to cost loans), though these have since dropped significantly this morning on the again of decrease inflation.”
Marc von Grundherr, director of Benham and Reeves, stated: “We’re set for a really robust finish to the yr, regardless of the same old seasonal lull that comes with the Christmas interval.
“A rush of sellers placing their residence available on the market signifies that many consumers discover themselves spoilt for alternative and in a position to negotiate onerous on the worth they pay.”
Jonathan Hopper, chief government of Garrington Property Finders, stated: “Mortgage charges have stopped falling too, although immediately’s welcome fall in client inflation means additional fee cuts may very well be on the playing cards for November.”
Gareth Atkins, managing director of lettings at Foxtons, stated: “Because the rental market begins to stabilise forward of the winter months, we’re seeing key regional developments shaping the panorama.
“Whereas general demand in London noticed a seasonal decline in September, resulting from longer tenancy timelines, areas like central London noticed a 12% improve in candidates per new instruction.”