UK House Price Index: House prices continue to rise driven by regional growth

According to today’s UK House Price Index from HM Land Registry, UK average house prices rose 3.4% in the year to October 2024, continuing the previous upward trend in September 2024, which saw a 2.8% increase. The average price of property in the UK in April was valued at £292,000. UK house prices have also risen 0.2% since September.

The latest regional data also shows there was a significant variation in price rises across the UK, with the North East, Scotland and Northern Ireland leading the way with the highest annual growth of 4.7%, 5.5% and 6.2% respectively. However, London house prices only grew in the year to October by 0.2%. the monthly change in London was -1.4% highlighting affordability concerns in areas with the highest house prices.

Stacy Eden, national head of real estate and partner at leading audit, tax and consulting firm RSM UK, comments: 'The latest house prices index combined with mortgage approvals hitting the highest level since August 2022 shows the market is continuing to strengthen. Strong regional growth, particularly in the North East, Scotland and Northern Ireland, has helped average house prices to jump 3.4%. 

“The gentle upward trend in house prices is likely to continue, given the shortage of residential properties available. However, the house price to income ratio has dropped to about 7.3, the lowest level since 2014, demonstrating there is plenty of scope for house prices to rebound, and we expect a 4% growth in 2025. 

“It is no wonder the government priority is accelerating housebuilding with housing shortages still trapping many households in the rental market, pushing rents up by 9%. However, the housebuilding targets are ambitious and many believe will fall short by 20% but the Government has set the direction of travel and stated providing homes for people must be the “top priority”. However, a shake-up of the planning rules, labour upskilling and funding is all needed to underpin progress and make delivering on the housing targets achievable.”