Average UK house prices increased by 3.4% to £292,000, in the 12 months to October 2024, the latest Office for National Statistics data reveals.
The data found that annual growth was up from 2.8% in the 12 months to September 2024.
Annual inflation has been generally increasing since its low point of negative 2.7% in the 12 months to December 2023.
The average house price for England was £309,000 in October 2024, up 3.0% from a year earlier, while the average house price for Wales was £222,000 in October 2024, up 4.0% the same period last year.
Meanwhile, the average house price in Scotland was £197,000 in October 2024, up 5.5% from a year earlier and in Northern Ireland the average price was £191,000 in Q3, up 6.2% from the same period last year.
The North East was the English region with the highest house price inflation in the 12 months to October 2024, at 4.7%. This was down from 6.0% in the 12 months to September 2024.
Annual house price inflation was lowest in London, at 0.2% in the 12 months to October 2024. This was up from a decrease of 0.3% in the 12 months to September 2024.
Atom bank head of mortgages Richard Harrison says: “Although a second consecutive rise in inflation means we are unlikely to see the Bank of England reduce the base rate tomorrow, the market’s anticipation of further cuts and lower mortgage rates next year offers some optimism for potential homebuyers.”
“The housing market has had a busy finish to 2024, with many prospective buyers looking to push on and get deals over the line before the new year. Figures from HMRC show that transactions in October were up by 21% on a year ago, while Rightmove reported that the number of sales being agreed is up by nearly a quarter compared with the same period in 2023.”
“For all of the jitters in the build up to the Budget, the reality is that people need homes in which to live and we don’t have enough to meet that demand. While we keep a watchful eye on Labour’s plan to build, we should expect to see house prices continue to rise to new highs in 2025.”
“While the prospect of lower mortgage rates will be welcome for many aspiring homebuyers, lenders must also grasp the opportunity to deliver better support to those who are currently underserved, such as buyers with smaller deposits or who have experienced temporary credit issues.”
“We cannot allow homeownership to be out of reach for those who are more than able to repay a mortgage, but who need a more understanding approach from lenders.”
Meanwhile, Propertymark chief executive officer Nathan Emerson states: “Looking at the entire year in view and against a backdrop of challenging economic conditions and political change, it is hugely encouraging to witness such a strong year of overall growth within the housing market.”
“As we head across the winter months, we are expecting to see house transactions pick up beyond what is normally expected across England and Northern Ireland for this time of the year, as people look to complete on a sale before new Stamp Duty thresholds take effect next April.”
“As the new year quickly approaches Propertymark looks forward to seeing how the UK Government will deliver on its ambitious aim of constructing 1.5m new homes by 2029. It’s vital we see the right homes delivered in the right areas to keep pace with a population that is expected to hit nearly 70m by 2030.”