Istock

Annual house prices rise 2.2% in July as market 'baring its teeth' and 'demonstrating considerable resilience'




Average UK annual house prices rose by 2.2%, while prices increased by 0.6% since June 2024, according to the HM Land Registry HPI for July.

The average property in the UK is now valued at £289,000.

The region with the highest annual change was the North East at 3.8%, while the highest monthly change was the East Midlands at 1.3%.

Meanwhile, London saw a 0.4% decrease in annual change, the only region to show a decline for this period, while monthly, Yorkshire and the Humber was the only region to see a fall, with a 0.5% decline.

The highest region for average house price for July 2024 was London at £521,000, while the lowest was £165,000.

Industry professionals had their say on the latest HM Land Registry HPI:

Richard Harrison, Head of Mortgages at Atom bank:

“There is clear momentum building in the housing market currently.

“The first base rate cut in four years has helped spark activity and a bit of competition among lenders, bringing back prospective buyers who might have put deals on hold. For example, Rightmove has suggested that the number of interested buyers contacting estate agents is up by 19% compared with a year ago.

“Lower mortgage rates are undoubtedly playing a part here, and while another base rate cut this week looks unlikely, the markets seem to expect another cut before the end of the year, spelling more good news for potential buyers.

“Moneyfacts data shows that average interest rates for two- and five-year fixed rates have fallen for two straight months, a trend that borrowers will hope to see continue.

“September marks the two-year anniversary of the ill-fated mini-Budget, an excellent reminder of the devastating impact the political world can have on mortgage rates and the housing market.


“With the Budget due next month, I hope the new Government is thinking carefully about how it can positively shape the prospects for homebuyers and homeowners in the years ahead, particularly first-time buyers. The housing ladder can only function if people are able to get onto that first rung.”

Amy Reynolds, head of sales at Antony Roberts:

“Most properties are getting a good number of viewings but pricing is very important. Well-priced properties sell, everything else sits on the market, goes stale and ultimately will achieve less than it could have realised if the price had been more realistic in the first place.

"We achieved over asking price on two houses this week alone, and have another house that after just a 2%price reduction, received an offer at the new asking price.

The owners were sensible and understood a small price correction was needed to get the applicants to offer. Of what we sold this week, two houses were on a main road and one backed onto a railway proving all properties are saleable if the price is right.

“This isn’t a market where buyers are coming in with big offers, there are some exceptions to this but most people want to see properties that are reasonably priced and not waste their time. In a rising market, you can ask a high price and know applicants will view and offer but a flat market is very different.

“It looks unlikely that the BoE will cut rates this month but a November rate cut, while too late to impact the housing market this year, will help kickstart the 2025 market."

Jeremy Leaf, London estate agent and a former RICS residential chairman:

“The market is baring its teeth once more, demonstrating considerable resilience as these figures, unlike others, reflect cash and mortgage transactions in the build-up to the election when we would have expected economic worries to have compromised prices.

“Since then, falling mortgage rates, steadier inflation and more political certainty have helped to release pent-up demand and supply.

“Looking forward, we do not anticipate prices will pick up sharply as the improved choice and concerns, particularly among higher-end buyers and sellers, mean caution is prevailing."

Leave a comment