The housing market in England and Wales saw a slight decline in July, with the average sale price declining by approximatively £500 to £360,620. This small downturn pauses the small gains seen over the past few months.
Data released by the e.surv Acadata House Price Index shows that there has also been a change in annual house price, which has decreased by 1.3%, making it the most robust performance in just over a year.
This is an improvement on the almost 4% annual declines announced in the earlier parts of 2024. The e.surve date indicates that the most challenging conditions may now be in the past, peaking in late 2023, and the market could now be on a slow but steady path to recovery.
The index found that there has been positive annual price movement across all parts of England of Wales. The highest year-on-year price increases were seen in the North East and North West, while notable improvements were also recorded in South West and Wales.
While prices may still be almost 5% off the previous peak reached in October 2022, the data suggests that the most severe market conditions have been left behind.
Richard Sextion, e.surv director, said: “Prices in July were just 1.3% below a year earlier. This is the strongest performance since June 2023 and a considerable improvement on the year-on-year falls of nearly 4% seen in previous months.”
Interestingly, if London the South East were excluded, the 1.3% year-on-year decrease in house prices seen in England and Wales last month would fall to 1.0%.
A fall in house prices across the South East region – rather than London – has long been the reason why the overall market has experienced a decline in growth. Early indications in July suggest that for the first time in more than two years, the overall national price growth was boosted by the London market.
Sexton added: “Wage growth and lower inflation are expected to make mortgage costs more affordable relative to incomes. On the supply side, the government’s commitment to mandatory building targets and an increased output goal of 370,000 homes per annum signals a clear direction towards enhancing housing supply, though this will take time to materialise.”
