As we move into the final months of 2024, the housing market shows continued resilience, with house prices rising for the third consecutive month. According to the latest Halifax House Price Index for September 2024, prices are up by 0.3%, matching the growth seen in August. This increase brings the average UK property price to £293,399, the highest since June 2022.
Key Highlights:
- Year-on-Year Growth: House prices have increased by 4.7% annually, the strongest growth since November 2022. This sharp rise is largely driven by recovery from the weaker prices seen in 2023, reflecting positive market momentum.
- First-Time Buyers: The average price paid by first-time buyers now stands at £232,769. While this is an increase of 4.2% over the past year, it’s still around £1,000 less than two years ago, providing some relief for new homeowners looking to enter the market.
- Regional Disparities: Northern Ireland leads the way with a 9.7% annual growth, while London remains the most expensive region, with an average property price of £539,238.
What’s Driving the Market?
A combination of easing mortgage affordability, driven by falling interest rates and strong wage growth, has boosted buyer confidence. Mortgage approvals have surged, with a 43.4% increase compared to August 2023, reaching the highest level since mid-2022.
Though the market has been steadily recovering, affordability remains a concern for many. While mortgage rates are expected to fall further, housing costs continue to be a hurdle for both first-time buyers and investors alike.
What to Expect?
Market experts predict a modest rise in house prices for the remainder of 2024 and into 2025. For those looking to purchase a home, this could be an ideal time to take advantage of improving mortgage conditions. Investors might also find opportunities in regions like Northern Ireland and the North West, where house price growth is strongest.
For more detailed information on the Halifax House Price Index and to stay updated on future market trends, visit: Halifax House Price Index.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlord Insurance and Block of Flats Insurance. We can provide flexible policies to suit individual client needs and provide advice on what cover is required. For more information call the team on 01242 524498 or email enquiries@lansdowninsurance.com.
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