UK Property Market Nearing 2022 Peak Levels
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Housing Index Suggests Stable Start to 2024 for UK Property Prices
According to Halifax’s latest House Price Index, UK property prices aren’t far off, returning to the peak recorded in June 2022, showing that the market is fast recovering from last year’s slowdown. The mortgage provider states that the average cost of a home is now only around £1800 less than this peak.
The index, which is published on a monthly basis, looks at UK House Price statistics and tracks changes in the market. The most recent index gives a rundown of February figures for this year, and it has revealed a fifth consecutive monthly rise, registering +0.4%.
For those considering buy-to-let property investment, keeping up with property market news is essential, so let’s take a look at this newly released data.
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How Did the Property Market Perform in February 2024?
In February, UK house prices increased by 0.4% compared to January, which was £1091 in cash terms. This makes the average price currently £291,699 as per Halifax’s index. As mentioned, this is the fifth increase in a row, an encouraging statistic after 2023’s subdued market.
Looking at the annual change, the average price tag on a property was +1.7% higher than a year ago. This is a step down from the +2.3% recorded in January, but Halifax believes that both figures show a relatively stable start to the year.
If these statistics are combined with other positive signs, such as the increased housing activity that has been observed, including more mortgage approvals, the outlook looks promising at the current time, leading to more buy-to-let property for sale on the market.
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Regional Breakdown Shows Strong Growth in North West
While the overall UK average for February is promising, growth is still stalling in some regions, while others are experiencing higher-than-average price increases, according to Halifax’s index. Looking at regional differences is key when considering a real estate investment strategy.
The North West saw the highest annual growth in England. The region’s house prices rose by +4.4%, bringing the average to £232,128. The North East also experienced a substantial increase of +4.2%.
London is the region with the highest average house price, standing at £536,996. Annual growth was lower than the UK average, coming in at +1.5%, and this is the first positive annual growth seen in the region since January 2023.
The biggest yearly price dip was recorded in Eastern England. Properties in this region averaged £329,927, a drop of -0.8%, or £2794 in cash terms.
Is Market Confidence Improving?
This encouraging data, along with lower mortgage rates and the expectation of interest rate cuts later this year, is having a positive effect on market confidence.
Home.co.uk’s Asking Price Index, published in February, indicated optimism among sellers and anticipated increases in demand. Surveys regarding UK estate agents and property investors also suggest confidence in 2024 prospects.
To find out more about the UK property market, take a look at some of our dedicated buy-to-let area guides covering topics such as investment property available in Sunderland and Luton investment properties.
UK Property Market Nearing 2022 Peak Levels
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