House price growth strengthens to 1.1% in April: UK HPI

The latest provisional estimates released by HM Land Registry have shown that annual UK house price growth was 1.1% in the 12 months to April 2024.

Related topics:  Property,  House Prices,  UK HPI
Property | Reporter
19th June 2024
house prices 5

According to this morning's figures, the price of a typical home in the UK stood at £281,000 during the month - a rise of £3,000 compared to 12 months ago.

Average house prices in the 12 months to April 2024 increased in England to £298,000 (0.6%), increased in Wales to £208,000 (0.4%) and increased in Scotland to £190,000 (4.5%). The average house price increased in the year to Q1 (Jan to Mar) 2024 to £178,000 in Northern Ireland (4.0%).

On a non-seasonally adjusted basis, average UK house prices increased by 0.3% between March 2024 and April 2024, compared with an increase of 0.1% during the same period 12 months ago.

Of English regions, annual house price inflation was highest in the North West, where prices increased by 3.8% in the 12 months to April 2024. London was the English region with the lowest annual inflation, where prices decreased by 3.9% in the 12 months to April 2024.

Nathan Emerson CEO of Propertymark comments: "Since the start of the year, we have seen healthy progress within the housing sector, with consumers finding a sensible balance of affordability and market confidence.

"With the tide now decisively turning regarding inflation, the attention is now firmly focused on when the Bank of England feels confident enough to start lowering the base rate. Once this journey starts to happen and when the political landscape simmers down following the general election, we should see a stable market for the foreseeable future."

Matt Thompson, head of sales at Chestertons, says: “The majority of buyers in April would have secured a fixed mortgage ahead of rate hikes which means they would have been largely unaffected by rising mortgage rates.

"Other house hunters decided to rethink their budget or widen their search radius to accommodate rate increases rather than giving up on their search completely – particularly as the spring market has seen an increase in the number of available properties which has given buyers a larger pool of homes to choose from.”

Amy Reynolds, head of sales at estate agency Antony Roberts, says: “Negotiations are becoming an ever more central part of transactions. Buyers are more price-conscious, and sellers are increasingly realistic about their pricing. This dynamic has created a balanced market where negotiations are frequent but transactions remain steady.

“We are cautiously optimistic for the second half of the year. If the election results provide a clear direction, we anticipate a surge in market activity as delayed transactions are completed. Confidence in the market is likely to rebound, potentially leading to a stronger performance in the latter half of the year.

“However, we have concerns about landlords exiting the market. We are seeing an increase in landlords requesting valuations on their properties, as they prepare to sell if there is increased pressure on them from the new government.

“The fundamental demand for property remains strong. Sensible pricing and realistic negotiations are key to navigating this period successfully.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “As expected, inflation has hit the 2 per cent target, giving the Bank of England a further nudge to start reducing interest rates. If the Bank wants to be bold, that first reduction would come this month but more likely it will be August.

“There is a sense that some buyers and sellers are waiting for the first-rate reduction before taking action, so a cut this summer could really give the housing market a boost.

“Although Swap rates were already falling before the publication of the latest inflation data, mortgage pricing is fairly flat with little movement up or down. There is a sense that things are on hold until the election is out of the way. Following a somewhat challenging first half of the year, there are hopes that a post-election bounce will lead to a more promising autumn for the housing market.”

More like this
Latest from Financial Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.