Property values have grown 1.1 per cent in the last year, with the typical house price sitting at £288,949 in April 2024, according to the latest House Price Index from Halifax.
The biggest jump in value has been found in Northern Ireland, where house prices have increased 3.4 per cent.
While most areas have seen the price of their house go up, values have dropped in some parts of the UK.
Homes in the East Midlands, Eastern England and the South East have all decreased year-on-year, according to the data.
The latest House Price Index has been shared
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House price changes by region
Northern Ireland, £192,502 – up 3.4%
North West, £231,599 – up 3.3%
North East, £172,538 – up 2.2%
Scotland, £204,579 – up 1.5%
Yorkshire and the Humber, £207,166 – up 1.5%
West Midlands, £253,069 – up 1.2%
Wales, £218,775 – up 1.1%
South West, £303,262 – up 0.4%
London, £539,336 – up 0.1%
East Midlands, £239,579 – down 0.5%
South East, £384,972 – down 0.6%
Eastern England, £329,723 – down 1.1%
Properties remain the most valuable in London, at an average of £539,336, and the most affordable properties can be found in the North East.
Although house prices are up and demand is improving, there is still some uncertainty in the property market, according to head of mortgages at Halifax Amanda Bryden.
She said: “While there is always much scrutiny of monthly price changes – and a degree of volatility is to be expected given current market conditions – the reality is that average house prices have largely plateaued in the early part of 2024. This reflects a housing market finding its feet in an era of higher interest rates.
“While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability.
“Activity and demand is improving, evidenced by greater numbers of mortgage applications so far this year, while at an industry level mortgage approvals have reached their highest point in 18 months.
“Our recent research also found that buyers are adjusting their expectations, with first-time buyers in particular compensating for higher borrowing costs by targeting smaller properties.
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“We see this reflected in property prices for the first few months of this year, with the value of flats rising most sharply, closing the ‘growth gap’ on bigger properties that’s existed for most of the last four years.
“However, we can’t overlook the fact that affordability constraints are still a significant challenge, for both new buyers and those rolling off fixed-term deals.
“Mortgage rates have edged up again in recent weeks, primarily as a result of expectations around future Bank of England base rate changes, with markets now pricing in a slower pace of cuts.
“If, as is still expected, downward moves in bank rate come into play later this year, fixed mortgage rates should fall. Combined with the resilience displayed by the housing market over recent months, we now expect property prices to rise modestly over the course of 2024.”
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
