August saw a modest 0.3% increase in house prices, bringing the annual growth rate to 4.3%, the fastest pace since late 2022. This rise, however, is partly due to comparisons with weaker performance at the same time last year.
Key drivers of this growth include increased buyer confidence, following the Bank of England’s rate cut in early August and a downward trend in mortgage rates. According to a poll by Dataloft, 37% of property professionals expect further price increases over the next three months. The overall forecast for house prices in 2024 has shifted positively, with a predicted 1.4% price change, up from a -2.2% prediction last year.
Despite the positive outlook, affordability remains a concern for many potential buyers, which could limit sustained growth.
Key Takeaways:
House prices increased by 0.3% in August 2024.
Annual growth is now at 4.3%, the highest since 2022.
Buyer confidence has risen after rate cuts and lower mortgage rates.
37% of professionals expect further price increases in the coming months.
Affordability challenges may constrain future growth.
Sources: Dataloft by PriceHubble, Halifax, HM Treasury.