According to today’s House Price Index, UK average house prices rose 3.3% in the year to November 2024. On a seasonally adjusted basis, monthly house prices rose 0.1% in November 2024. The average price of a UK property was valued at £290,000.
Regional data shows a growing North/South divide in England price rises with the North East, North West and Yorkshire and the Humber leading the way with the highest annual growth of 5.9%, 5.7% and 5.7% respectively. However, South East and South West house prices only grew in the year to November by 1.4% and 2.2%, with London being the only region to contract by 0.1% which highlights affordability concerns in areas with the highest house prices.
Peter Graham, Partner and Regional Head of Real Estate in the North at audit, tax and consulting firm RSM UK, comments: “The latest house price index highlights the continued regional variations with house prices increases in the North of England leading the way, compared to the South, where affordability concerns continue to dampen growth due to interest rate increases over the last four years from 0.1% to 5.25%. With the financial markets forecasting fewer interest rate cuts in 2025 compared by a few months ago, the concern will be that this will continue to drag on house price growth particularly in the South.”
Stacy Eden, partner and National Head of Real Estate at RSM UK, added:“Property prices are slowly increasing with inflation, slowly falling interest rates and rising consumer income. Looking ahead, we expect to see house prices to continue with a gentle upward trend underpinned by the chronic lack of supply. The housing affordability index over the last couple of years has also fallen from close to 8.5 to just under 7.5, allowing for future house price rises. Concerns about measures announced in the budget and poor economic growth in 2025 may however mean house prices rise less than expected this year.”