Positive start to 2024 for UK house prices
- Average house prices rose by +1.3% in January, the fourth monthly rise in a row
- Property prices grew +2.5% annually, the highest annual growth since January 2023
- Typical UK home now costs £291,029, over £3,900 more than last month
- South East England continues to see most downward pressure on house prices
Kim Kinnaird, Director, Halifax Mortgages, said:
“The average house price in January was £291,029, up +1.3% or, in cash terms, £3,924 compared to December
2023.
This is the fourth consecutive month that house prices have risen and, as a result, the pace of annual growth is
now +2.5%, the highest rate since January last year.
The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary
pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers.
This has resulted in a positive start to 2024’s housing market.
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.
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.”
Read the full report for more insights on the current state of the UK housing market: Halifax Price Index January 202
Source: Halifax
