20 November 2024
If you are covering the latest house price index, please see the following comment from Holly Tomlinson, financial planner at Quilter:
“The latest UK House Price Index for September 2024 reveals that house prices have fallen by 0.3% month-on-month, yet annual growth remains positive at 2.9%, bringing the average UK property value to £292,000. This slight dip reflects the usual seasonal slowdown, but also hints at growing caution among buyers and sellers amid ongoing economic and policy uncertainty.
“Regionally, the picture remains varied. The North East continues to lead the way with annual price growth of 6.5%, driven by affordability and demand, while London lags behind with a 0.5% annual decline, underscoring the challenges in high-cost areas.
“Affordability remains a key theme throughout the market, but first-time buyers face a particularly challenging landscape, with prices for starter homes rising annually but falling slightly month-on-month, reflecting squeezed budgets and elevated mortgage costs. With rates having gone up in the last few months despite a cut to the base rate first time buyers continue to have the rug pulled from beneath them.
“The recent budget announcements are also weighing on sentiment. Higher stamp duty for second-home buyers and landlords aims to ease competition for first-time buyers, but it risks exacerbating rental supply shortages, particularly in urban areas. These changes, coupled with looming reductions in the first-time buyer stamp duty threshold from March 2025, could drive a rush of activity in the coming months as buyers try to beat the deadline.
“With the Bank of England recently cutting interest rates, there is cautious optimism that affordability may improve for some buyers in 2025. However, with a new president in the US whose policies could prove inflationary and just today the news that UK inflation as edged up again we still don’t have economic certainty. As such elevated mortgage rates underline the importance of seeking advice to navigate an increasingly complex housing market.”
