UK House Prices Hit a New High.What It Means for You?

Written By Steven Andrea

The latest Halifax House Price Index is out, and it’s official: the UK housing market continues to surprise us. Despite everything—from rising interest rates to affordability challenges—house prices hit a record high in October 2024, with the average home now valued at £293,999.

Here’s a breakdown of what’s going on and what it might mean for you if you’re thinking about buying or selling.

What’s Happening in the Market?

House prices grew by a modest +0.2% in October, marking four months of steady increases. While annual growth slowed slightly to +3.9% (down from +4.6% in September), the overall picture is one of stability.

Let’s put it simply: the housing market is holding its ground. While prices haven’t skyrocketed like they did during the post-pandemic “race for space,” they also haven’t dropped much despite the economic challenges of recent years.

In fact, house prices are now higher than ever, surpassing the previous record set in June 2022. That’s right—despite rising interest rates, people are still moving, and the market is buzzing with activity.

Why Are Prices Still Rising?

There are a few reasons behind this steady growth:

  • Better Mortgage Deals: Mortgage rates have improved since summer 2023, giving buyers more confidence to make their move.

  • High Demand, Limited Supply: There’s still a shortage of homes for sale, which keeps competition strong and prices steady.

  • Resilient Buyers: New mortgage approvals are at their highest level in two years, showing that people are still determined to buy despite affordability challenges.

A Closer Look Across the UK

Not all regions are moving at the same pace. Here’s how things are shaping up:

  • Northern Ireland: Leading the pack with annual growth of +10.2%. If you own a home here, your property is likely to be in high demand.

  • Wales: Prices are up +5.6%, with the average home now costing £225,543.

  • Scotland: Growth is slower at +1.9%, but the market remains steady with homes averaging £206,480.

  • North West England: The strongest performer in England, with prices up +5.9% year-on-year.

  • London: Still the priciest place to live, with an average property price of £543,308. Growth here was +3.5%—modest but steady.

What Does This Mean for Homeowners?

If you’re a seller, it’s an exciting time to enter the market. Record-high prices mean you could achieve a fantastic result for your property, especially with buyers showing renewed interest. The recent stability gives homeowners confidence that now is a great time to list.

For buyers, it’s not all bad news. Mortgage rates have improved significantly since their peak last year, and the market isn’t as frantic as it was during the pandemic. It’s still competitive, but there are opportunities to secure your dream home if you act decisively.

Looking Ahead

The experts at Halifax expect prices to keep growing, though more gradually. Borrowing costs and new policies like higher stamp duty for second homes might slow things down, but overall, the outlook remains positive.

For most homeowners, it’s reassuring to see how resilient the market has been. Whether you’re planning to sell, buy, or just curious about your home’s value, now is a great time to get expert advice.

Thinking About Selling? Let’s Talk!

At & Co, we know the property market inside out, and we’re here to guide you every step of the way. Whether you’re curious about your home’s current value or ready to sell, our expert agents offer a bespoke service tailored to you.

From record-breaking prices to innovative marketing strategies, we’ll make sure your property gets the attention it deserves.

Book your free valuation today and let’s explore how we can help you make your next move a success.

Steven Andrea