Average UK house price jumps 1.3% at start of 2024 – Halifax

The average UK house price climbed by 1.3% in January compared to December’s average, the latest Halifax House Price Index has indicated.

This was the fourth monthly rise in a row and has accelerated the pace of annual house price growth to 2.5%, the highest rate since January last year.

Halifax also reported that the latest monthly increase, worth £3,924 in cash terms, has taken the average UK house price to £291,029.

According to the group’s latest index, the recent reduction of mortgage rates from lenders making competition pick up, alongside fading inflationary pressures and a resilient labour market, have contributed to “increased confidence among buyers and sellers”.

“This has resulted in a positive start to 2024’s housing market,” said director at Halifax Mortgages, Kim Kinnaird. “However, while housing activity has increased over recent months, interest rates remain elevated compared to the historic lows seen in recent years and demand continues to exceed supply.

“For those looking to buy a first home, the average deposit raised is now £53,414, around 19% of the purchase price. It’s not surprising that almost two thirds (63%) of new buyers getting a foot on the ladder are now buying in joint names.”

Halifax’s data showed that the South East of England was the UK region where house price growth fell the most, with homes selling for an average £379,220 (-2.3%), a drop of £8,866.

London retained the top spot for the highest average house price across all the regions, at £529,528, despite prices in the capital declining by 0.4% on an annual basis.

Scotland and Wales both saw positive growth, at 4% on an annual basis to £206,087 and £219,609, respectively, while the North West (3.2%), Yorkshire and Humber (2.8%), North East (2.0%) and East Midlands (0.5%) have also recorded house price increases over the last year.

“Looking ahead, affordability challenges are likely to remain and further modest falls should not be ruled out, against a backdrop of broader uncertainty in the economic environment,” Kinnaird added.

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