The Office for National Statistics (ONS) has estimated that average UK house prices decreased 0.2% in the 12 months to February 2024, to £281,000. This was up from a decrease of 1.3% in the 12 months to January 2024 (revised estimate).
In the 12 months to February 2024, average house prices decreased in England to £298,000 (negative 1.1%), decreased in Wales to £211,000 (negative 1.2%) and increased in Scotland to £188,000 (5.6%). Average house prices increased by 1.4% to £178,000 in the year to Quarter 4 (Oct to Dec) 2023 in Northern Ireland.
Meanwhile, the ONS estimated that average UK private rents increased by 9.2% in the 12 months to March 2024, up from 9.0% in the 12 months to February 2024.
In the 12 months to March 2024, average monthly rents increased to £1,285 (9.1%) in England, £727 (9.0%) in Wales and £947 (10.5%) in Scotland.
Meanwhile, in the 12 months to January 2024, average rents increased by 10.1% in Northern Ireland.
On regional level in England, private rent inflation in the 12 months to March 2024 was highest in London (11.2%) and lowest in the North East (6.1%).
In Great Britain, the average private rent was highest in Kensington and Chelsea (£3,305) and lowest in Dumfries and Galloway (£475).
Average UK house prices decreased by 0.2% in the 12 months to February 2024 (provisional estimate), up from a decrease of 1.3% (revised estimate) in the 12 months to January 2024.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Of all the housing market surveys, this one is arguably the most interesting, not just because it covers about six times more than the major lenders’ transactions but it also includes cash buyers who have supported activity so crucially recently when mortgage payments have been in an uncertain phase.
“Now rates have stabilised and the next move is likely to be downwards, particularly following lower inflation announced today, with demand improving.
“Sellers have also been busy and the net result is more choice while prices are up a bit and down a bit – a pattern we expect to continue over the next few months.”
Malcolm Webb, technical director, Legal & General Surveying Services, added: “There is no denying that the mortgage market has its challenges: it is still sensitive to pricing and household budgets are squeezed. Advisers continue to do a brilliant job in juggling all these factors and more, and are, without a doubt, the lifeblood of our industry. Our market has shown its long-term resilience time and time again, and as prices drop slightly, we may see increases in buyer demand.
“There are other reasons to be cautiously optimistic for a stronger Q2, with the brighter weather, clocks moving forward, and a string of bank holidays encouraging buyers to dip their toes back in the water. Rates continue to adjust from their summer 2023 peak, and the London market is starting to rebound after a muted 2023. A home in the capital is now more likely to sell above its asking price than anywhere else in England and Wales for the first time since 2016.”
