The average house price remains unchanged from May 2023 at £264,900. However, some regions are experiencing price increases, while others are seeing declines. Discover the latest trends in your area.
Key Takeaways:
- House prices have not changed compared to May 2023.
- The average UK house price is expected to increase by 1.5% by the end of the year.
- Current house prices are estimated to be 8% higher than necessary but are expected to correct by year-end.
- 75% of house sales for 2024 have already been completed or are in progress.
UK house prices starting to rise across the UK
Zoopla’s House Price Index measures the rise and fall of house prices across the UK. It shows that house prices have increased across all areas of the UK over the last quarter. House price inflation is no longer negative and stands at 0% year-on-year, meaning the average house price is now £264,900, the same as it was a year ago.
Despite this, southern England remains in negative territory in terms of annual inflation, although that gap is now decreasing, while prices have risen elsewhere in the UK. Sales market momentum is continuing in the lead-up to the election, with demand for homes up 6% compared to this time last year. The number of sales agreed is also up 8%, and we believe that 75% of the 1.1 million sales projected for this year have already been completed or are in the pipeline.
We estimate that UK house prices are currently 8% over-valued, a result of the sharp price rises during the pandemic, and we expect this to correct by the end of the year. Overall, UK house prices are on track to rise 1.5% over the whole of 2024, indicating that the housing market is remaining resilient.
Richard Donnell, our Executive Director of Research, says: “The housing market continues to adjust to higher borrowing costs, and the summer slowdown is now arriving, tempering activity. The timing of the first cut in the base rate is key and will boost market sentiment and sales activity.”
The average prices for different property types across the UK
The average price of UK properties remains stable, with a slight increase of £110 month-on-month and no change year-on-year. This stability in the housing market suggests that despite economic fluctuations, property values are holding their ground. For sellers, this means maintaining property prices close to their expectations, while buyers can expect a consistent market without drastic price hikes.
If you’re a buyer, now might be a good time to consider detached properties. These homes are nearly £2,300 cheaper than they were last year, offering a significant saving for those looking to purchase a larger home. The reduction in prices for detached houses indicates a shift in demand, possibly influenced by changing lifestyles and remote working trends. This makes it an opportune moment for buyers seeking more space and privacy.
Similarly, flats and maisonettes have also seen a decrease in price, averaging £2,000 less than a year ago. This drop in prices could attract first-time buyers and investors looking for affordable options in urban areas. The decline in prices for these types of properties highlights a broader trend in the market, where buyers are exploring different property types to suit their needs and budgets.
| Property type | Average house prices in March | Average house prices in April | Average house prices in May | £ annual price change | % annual price change |
| All property | £264,300 | £264,700 | £264,900 | £110 | 0.00% |
| Detached | £445,800 | £446,400 | £447,500 | -£2,290 | -0.50% |
| Flats/Maisonettes | £190,400 | £190,700 | £191,100 | -£2,030 | -1.10% |
| Semi-detached | £269,100 | £269,300 | £270,100 | £1,950 | 0.70% |
| Terraces | £232,700 | £232,700 | £233,600 | £1,910 | 0.80% |
Regions where house prices are rising
Homes in Northern Ireland have experienced the most significant price increase over the past year, rising by 3.3%. Following closely behind are properties in the North West (1.5%), the North East (1.4%), Scotland (1.3%), Wales (1%), and the West Midlands (0.5%). The relatively lower property prices in these areas have mitigated the impact of higher mortgage rates, bolstering demand and thereby contributing to the rise in house prices.
Conversely, Southern England paints a less optimistic picture, with the East of England leading in house price declines (-1.4%). This trend is followed by the South East (-1%), South West (-0.9%), and London (-0.4%). The East Midlands also shows a slight decline of 0.4%. Despite these decreases, there are signs of stabilization in these regions, with some areas beginning to see prices inch back up, narrowing the year-on-year declines.
| Region | £ annual price change | % annual price change | Average house price |
| Northern Ireland | £5,440 | +3.3% | £170,400 |
| North West | £2,810 | +1.5% | £195,600 |
| Wales | £2,060 | +1% | £204,000 |
| Scotland | £2,050 | +1.3% | £163,200 |
| North East | £1,980 | +1.4% | £142,500 |
| Yorkshire | £1,300 | +0.7% | £186,600 |
| West Midlands | £1,150 | +0.5% | £230,200 |
| East Midlands | -£810 | -0.4% | £228,600 |
| London | -£2,250 | -0.4% | £535,700 |
| South West | -£2,790 | -0.9% | £312,900 |
| South East | -£4,020 | -1% | £385,600 |
| East of England | -£4,670 | -1.4% | £335,800 |
| UK | £110 | 0% | £264,900 |
Top 10 cities where house prices are rising
Belfast has shown significant growth in house prices over the past year, leading the way with a robust increase of 3.4%. This rise translates to an average price jump of £5,680 per property, pushing the average house price in Belfast to £173,900. Rochdale follows closely with a 2.7% increase, where homes have seen prices rise by an average of £4,460, bringing the average house price in the area to £170,100.
In addition, Bolton has experienced a notable uptick of 2.3% in house prices, resulting in an average increase of £3,790 per property. This brings the average house price in Bolton to £171,900. These areas demonstrate varying degrees of growth, reflecting regional trends in the housing market across different parts of the UK.
| City | £ annual price change | % annual price change | Average house price |
| Belfast | £5,680 | +3.4% | £173,900 |
| Rochdale | £4,460 | +2.7% | £170,100 |
| Bolton | £3,790 | +2.3% | £171,900 |
| Huddersfield | £3,860 | +2.2% | £178,700 |
| Burnley | £2,770 | +2.2% | £128,600 |
| Barnsley | £3,130 | +2% | £160,100 |
| Wigan | £3,210 | +1.9% | £170,500 |
| Bradford | £2,680 | +1.7% | £157,600 |
| Manchester | £3,590 | +1.6% | £224,900 |
| Blackburn | £2,190 | +1.6% | £175,900 |
10 cities where house prices are falling
Belfast has shown significant growth in house prices over the past year, leading the way with a robust increase of 3.4%. This rise translates to an average price jump of £5,680 per property, pushing the average house price in Belfast to £173,900. Rochdale follows closely with a 2.7% increase, where homes have seen prices rise by an average of £4,460, bringing the average house price in the area to £170,100.
In addition, Bolton has experienced a notable uptick of 2.3% in house prices, resulting in an average increase of £3,790 per property. This brings the average house price in Bolton to £171,900. These areas demonstrate varying degrees of growth, reflecting regional trends in the housing market across different parts of the UK.
| City | £ annual price change | % annual price change | Average house price |
| Ipswich | -£6,520 | -3% | £212,100 |
| Hastings | -£7,890 | -2.8% | £271,400 |
| Norwich | -£5,550 | -2.1% | £260,900 |
| Medway | -£4,910 | -1.7% | £285,800 |
| Northampton | -£3,880 | -1.6% | £234,800 |
| Brighton | -£6,320 | -1.6% | £398,800 |
| Bournemouth | -£5,140 | -1.5% | £331,700 |
| Milton Keynes | -£4,270 | -1.4% | £307,900 |
| Aberdeen | -£1,850 | -1.3% | £137,400 |
| Portsmouth | -£3,520 | -1.2% | £279,100 |
Top 10 local authorities where house prices are rising
In the northern regions of the UK, traditionally known for more affordable housing, significant price growth has been observed recently.
Leading the charge is Sunderland, where house prices have surged by 5.2% over the past year, equating to an increase of £5,990. This upward trend has elevated the average house price in Sunderland to £121,900. Following closely is Dumfries & Galloway in Scotland, where prices have risen by 3%, amounting to a £4,830 increase, bringing the average house price to £148,000. Additionally, both North Lanarkshire and South Lanarkshire in Lanarkshire have seen notable increases, with North Lanarkshire homes rising by just over £3,000 to an average of £123,500, and South Lanarkshire homes increasing by £3,700, averaging out at £146,100.
| Local authority | £ annual price change | % annual price change | Average house price |
| Sunderland | £5,990 | 5.2% | £121,900 |
| Dumfries & Galloway | £4,830 | 3% | £148,000 |
| North Lanarkshire | £3,110 | 2.6% | £123,500 |
| South Lanarkshire | £3,700 | 2.6% | £147,100 |
| Powys | £5,430 | 2.3% | £236,600 |
| Shropshire | £6,280 | 2.3% | £277,900 |
| Sir Ceredigion | £5,330 | 2.3% | £238,000 |
| Scottish Borders | £4,030 | 2.2% | £183,800 |
| Rochdale | £3,710 | 2.2% | £170,200 |
| Oldham | £3,850 | 2.2% | £177,400 |
Local authorities where house prices are falling
In the pricier southern regions, house prices are continuing to decline following a rapid surge during the pandemic.
Canterbury in leafy Kent is notably affected, with a 4.1% drop in house prices over the past year, equating to a decrease of £14,430 and bringing the average price down to £339,300. Following Canterbury, coastal areas such as Thanet have also seen declines, with prices falling by 3.9% (£11,630), resulting in an average price of £286,200. Similarly, Dover experienced a 3.8% decrease, lowering prices to £293,400.
Across Essex, Tendring, Braintree, and Colchester have also reported declines in house prices, ranging from 3% to £8-10,000.
| Local authority | £ annual price change | % annual price change | Average house price |
| Canterbury | £14,430 | -4.1% | £339,300 |
| Thanet | £11,630 | -3.9% | £286,200 |
| Dover | £11,640 | -3.8% | £293,400 |
| Tendring | £8,010 | -3% | £258,500 |
| Braintree | £10,270 | -2.9% | £341,300 |
| Colchester | £8,830 | -2.8% | £301,800 |
| Wealdon | £11,730 | -2.6% | £435,200 |
| Rother | £10,010 | -2.6% | £375,400 |
| Tonbridge Wells | £11,720 | -2.5% | £462,400 |
| West Somerset | £7,640 | -2.4% | £304,800 |
Momentum continues in the sales market
Sales momentum continued into June, albeit at a slightly slower pace as the market transitions into the quieter summer period. Despite house price inflation remaining negative in the south, increased sales volumes in the first half of the year have contributed to stabilizing prices.
According to Donnell, “All regions and countries of the UK have seen month-on-month increases in house prices since January.” However, he cautioned that significant acceleration in price rises is not expected in the coming months.
Nevertheless, the average house prices are projected to be 1.5% higher by the end of this year.
75% of this years’ sales are completed or in progress
Our data indicates that the market is set to achieve 1.1 million sales this year, with three-quarters of these transactions either already completed or in progress towards completion. This figure represents a 10% increase compared to the number of sales in 2023 but remains below the 20-year average.
Donnell commented, “It is encouraging to see sales increasing despite the higher borrowing costs. This reflects a more pragmatic approach from sellers and a renewed, cautious confidence among buyers.”
How higher mortgage rates have affected house prices
The housing market has shown remarkable resilience despite the increase in mortgage rates over the past year. Starting below 2% in late 2021, rates have now reached 4.7%, peaking above 5% in October 2022 and during the summer of 2023.
According to Donnell, “Higher borrowing costs have reduced the purchasing power of prospective buyers. However, instead of significant price declines, the primary impact has been a sharp decrease in the number of property transactions, which were 23% lower throughout 2023.”
He added, “House prices have remained stable due to the limited number of forced sales. Despite broader cost-of-living pressures, low unemployment rates by historical standards have kept mortgage delinquencies relatively low.”
Looking ahead, Donnell expects house price inflation to stay modest, likely trailing behind increases in household incomes over the next 1-2 years.
Interest rates hold the key
Looking forward, the short-term outlook for the property sales market hinges largely on mortgage rates, which are influenced by changes in interest rates.
“Any reductions in the base rate throughout the summer and into autumn will likely boost market sentiment and sales activity, though the impact on fixed-rate mortgages may be less pronounced,” stated Donnell.
“According to city forecasts for base rates, we anticipate mortgage rates to hover between 4-4.5% heading into 2025. These levels should sustain sales volumes and keep house price inflation at low, single-digit rates.”
Meanwhile, house prices in Southern England are projected to continue lagging behind the UK average as they adjust to align with incomes.
“Sustained growth in real incomes will be crucial in bolstering sales and demand as we move into 2025,” Donnell emphasized.
MORE Property blogs HERE:
Buy To Let Defaults Surge with Rising Rates
Cashing Out of Buy To Let? Top Places to Make a Quick Sale
Why Are Buy-to-Let Mortgages Interest Only?
Is Buy-to-Let Still Profitable Today?
A Comprehensive Guide to Buy-to-Let Mortgages
First-Time Buyer’s Guide to Buy-to-Let Mortgages
Should You Invest in Property Now or Wait for 2024?
How Much Do You Need for Buy-to-Let Mortgages?
Stamp Duty on Buy-to-Let Properties
Can I Use Equity As A Deposit For Buy To Let?
Can I Buy A House And Renting It Out UK?
Is renting houses profitable UK in 2023?
Is It Illegal To Live In Your Buy To Let Property?
Ways to Minimize Your Rental Property Taxes
Section 24’s Impact on Property Investor Cashflow
