UK house prices up in September as North East leads the way

According to today’s UK House Price Index from HM Land Registry, UK average house prices rose 2.9% in the year to September 2024 (compared to a 2.7% rise in August 2024), with the average property in the UK valued at £292,000.  

The latest regional data also shows there was a significant variation in price rises across the UK, with the North East leading the way with the highest annual growth of 6.5%. London house prices fell in the year to September 2024 by 0.5%. 

Stacy Eden, National Head of Real Estate at leading audit, tax and consulting firm RSM UK, comments: “Property prices continue to rise, with RICS reporting increases in buyer demand which is no surprise given falls in interest rates. Looking ahead, we expect to see house prices to continue with a gentle upward trend across the UK, driven by the lack of residential properties in the market. Transactions continue to edge upwards from a low level at 92,000 for September, up 9% on the previous year, although it remains lower than pre-pandemic  normal levels. 

“However, the regional picture tells a story that the reduction in consumer confidence since the Budget, and the impact of not retaining SDLT reliefs for first time buyers have stymied the market in London and the South. What is particularly concerning is that rents nationally remain high, increasing 8.7% in September 2024. In addition, London tenants are facing double digit rises as they struggle to get on the housing ladder. Buy to let landlords are also contemplating exiting the market due to new legislation and higher levels of SDLT. 

“But, hope is on the horizon, given government’s focus on accelerated housebuilding and planning reform, which will increase housing supply to give greater opportunity for first time buyers to enter the market.”