Overall, market activity has remained relatively unchanged over the last year despite remaining subdued compared to 2019, with a 15% decrease in overall transactions.
According to Nationwide, mortgage transactions have seen an even steeper decline of around 25%, most likely due to rising borrowing costs. Cash transactions, on the other hand, have increased by about 5% above pre-pandemic levels.
Despite solid earnings growth racing ahead of house price increases in recent years, Nationwide suggests the rise in mortgage rates has significantly impacted affordability. For example, interest rates on a five-year fixed-rate mortgage for a borrower with a 25% deposit were just 1.3% in late 2021 but have recently surged to approximately 4.7%.
From a regional perspective, Northern Ireland and the North West were the joint best-performing areas – with prices up 4.1% compared to Q2 2023.
Northern regions of England outpaced the South, with a 2.9% increase in house prices annually this quarter. The North was also identified as the most affordable region in the report’s UK Fact File.
Nationwide’s report states that southern regions experienced a slight decline of 0.3%, consistent with the previous quarter. London was the strongest performing region in the South, with 1.6% annual growth, whilst East Anglia saw prices fall by 1.8%.
| Region | Average price (Q2 2024) | Annual % change this quarter | Annual % change last quarter |
| UK | £265,012 | 1.20% | 1.00% |
| N Ireland | £190,300 | 4.10% | 4.60% |
| North West | £213,580 | 4.10% | 2.90% |
| Yorkshire & The Humber | £206,653 | 3.80% | 2.40% |
| North | £158,467 | 2.90% | 4.10% |
| London | £525,248 | 1.60% | 1.60% |
| West Midlands | £242,873 | 1.40% | -0.20% |
| Wales | £207,650 | 1.40% | 1.20% |
| Scotland | £181,186 | 1.40% | 3.70% |
| East Midlands | £231,745 | -0.20% | 0.50% |
| Outer Met | £418,919 | -0.50% | -0.60% |
| Outer S East | £331,995 | -1.10% | -1.00% |
| South West | £301,139 | -1.50% | -1.70% |
| East Anglia | £270,597 | -1.80% | -1.30% |
Learn More: Is buy-to-let still worth it in 2024? Our detailed guides offer some insights into the current state of the housing market and outline the best buy-to-let areas in the UK!
