It’s been a turbulent year for the property industry, with high interest rates and house prices fluctuating heavily. But now things could be changing. We take a look at house prices and the property market in autumn 2024.
House prices in autumn 2024
News released last week by Halifax suggest that property prices are on the rise once again.
Prices hit a two year high last month in August which shows the economy is now recovering after a dip earlier in the year.
The report suggests that prices increased 0.3 per cent last month and also rose 0.9 per cent in July.
This puts the average cost of a property in the UK at £292,505 and is the highest level since August 2022.
Looking at an annual basis, house prices were also up 4.3 per cent in August.
Why are house prices rising?
House prices tend to rise with demand. With the lowering of interest rates, confidence is now growing in the market once again.
August saw the Bank of England’s base rate drop from 5.25 per cent to 5 per cent. After this, most mortgage lenders lowered the rates on some of their products.
This in turn allowed better affordability for some, and encouraged others to look into purchasing a new home too.
Rising house prices is good news for home owners but not so good for those looking to take a step onto the housing ladder for the first time.
Affordability is still a problem for first time buyers, with many having to wait until their 30s to buy a home, or use the Bank of Mum and Dad.
London house prices in autumn 2024
London still remains as the most expensive place to buy a property in the UK.
The average property price in the capital is now £536,056, which is an increase of 1.5 per cent since last August.
London was hit hard by falling house prices earlier this year and last year but there now seems to be some recovery. Zoopla reports.
London is now 0.2 per cent positive growth at the end of the summer.
Nottingham house prices
Looking at house prices in Nottingham, growth is at 0.4 per cent year on year.
Nottingham has actually had a very good time for growth and there has been a small, steady increase in prices over 2024. Many other cities haven’t seen this sort of growth.
Interestingly, the East Midlands, on average, is down 0.1% year on year.
The average house price in Nottingham is now £203,100, according to Hometrack.
Our outlook for the housing market
We would expect the housing market to continue to grow over the next few months and into 2025.
Winter is traditionally a quiet month with not much growth, however we would expect a further interest rate cut later this year, if not early next, into the spring.
This is likely to boost prices further and confidence should again grow in the market overall.
How much is your house worth?
How much has your property grown in value since you purchased it? Talk to Benwell Daykin estate agents Nottingham for a free, no obligation property valuation.
You can also contact us to discuss the market in more detail.
