New Data Indicates ‘Positive Start to 2024’ for UK Property Market

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Pace of Annual Growth is Highest Rate Since January 2023

Halifax has just released its latest House Price Index, and the data suggests a ‘positive start to 2024’ — good news for those considering investing in UK real estate.

House prices are still rising, registering a positive growth of 1.3% in January. This constitutes the fourth rise in a row. The market also experienced the highest annual increase since January 2023, growing 2.5%.

This puts the average UK house price at £291,029, up £3924 compared to December 2023.

According to Kim Kinnaird, Director of Halifax Mortgages:

“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.”

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North West Registers Highest Growth in England

For those looking into buy-to-let property investment, regional differences in house price growth are an essential factor to consider.

Regarding the English regions, the North West has displayed the highest growth, coming in at +3.2%. Other areas also registered increases, including Yorkshire and Humber, North East, and East Midlands.

Region	Annual Change
North West	+3.2%
Yorkshire and Humber	+2.8%
North East	+2.0%
East Midlands	+0.5%
London	-0.4%
South East	-2.3%

Source: Halifax House Price Index, January 2024

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Southern Regions Still Lagging Behind on House Price Growth

Southern regions are still playing catch up with the North and other areas regarding house price growth. The South East had the biggest fall of all regions last month -2.3%, a dip of £8866 in cash terms.

London house prices have declined by -0.4% compared to last year but are still way ahead of other regions regarding the most expensive property on average, sitting at £529,528 – much higher than the overall UK average. Due to slower growth and high prices, the buy-to-let London market has become less desirable to property investors, and many are turning their attention to the North.

Many regions of the UK seem to be gradually returning to healthy growth after the sluggish market of recent years. Savills forecasts that UK mainstream capital value will grow by an average of 17.9% leading up to 2028. But their research echoes the slower recovery of London and other Southern regions, as they predict that areas such as the North West will experience above UK average growth (20.2%), while London will be below the national average (13.9%).

Housing Activity Stats Show Gradual Improvement

The Halifax Price Index also includes figures from other sources regarding housing activity.

UK home sales decreased in December by 0.8% (seasonally adjusted) from November. But BoE data shows the number of housing mortgages approved rose by 2.3% in December. The annual change was 25.6% above December 2022.

Another improvement can be seen in the December results from the RICS Residential Market Survey. New buyer enquiries had a monthly change of 10%, rising from -3 %, and agreed sales have increased from -10 % to 6%. New instructions are at +1%, up from -4%, meaning the figure has moved into the positive for the first time since May 2023.

To learn more about the UK property market, take a look at some of our latest buy-to-let guides covering topics such as Poole investment properties and buy-to-let property in Eastbourne.

New Data Indicates Positive Start to 2024 for UK Property Market