Property values in nearby areas witness a fifth consecutive increase

Early 2024: UK Housing Market Shows Moderate Price Increases with Significant Regional Disparities

The UK housing market in early 2024 is characterised by a steady upward trend, albeit with notable regional differences, as the latest trends indicate. According to industry experts, the market remains balanced, with increased demand from buyers, renters, and investors, yet more homes available for sale, keeping prices in check.

In June 2025 (the closest available data to early 2024 trends), UK house prices increased by 1.4% monthly and around 3.3% annually, reflecting a gradual but steady rise. Regional differences are significant, with the North East leading price growth at a robust 7.8% annual increase, followed by the North West and East Midlands with 5% and 4.4% annual rises, respectively.

London, however, saw the lowest growth, with a 0.8% annual increase, indicating a relatively flat market there. The average house prices vary widely by region, with London having the highest average price of £561,000, while the North East has the lowest at £164,000.

Market activity was boosted in 2025 by changes allowing buyers to borrow up to 20% more on mortgages at similar rates, increasing demand and agreed sales by about 8%. Despite this, the higher supply, especially in southern England, prevented rapid price inflation.

Forecasts expect price growth to be moderate in 2024, with prime property prices mostly flat and wider UK house prices predicted to increase gradually around 2.8% in 2025, slowing in following years due to factors like interest rates and modest supply increases.

Chancellor Jeremy Hunt announced a cut in the higher rate of capital gains tax on residential properties from 28% to 24% from April 2024, aiming to encourage landlords and second homeowners to sell their properties, making more available for various buyers.

However, taking a broad view of the market can be misleading, as per Tom Brown, managing director of real estate at Ingenious. He emphasised that the situation is not uniform throughout the country and across all price ranges.

Despite high inflation and higher borrowing rates, the UK property sector remains resilient and popular, according to Brown. The institutional housing sector has also experienced fewer disruptions compared to the residential sector.

Kim Kinnaird, director of Halifax Mortgages, stated that the findings suggest a relatively stable start to 2024. However, she also noted that the downward trend on mortgage rates is showing signs of fading, which could potentially impact buyer confidence.

On a positive note, lower mortgage rates and expectations of Bank of England interest rate cuts this year should help buyer confidence, as per Kinnaird. The average UK house price in February 2024 is £291,699, an increase of £1,000 from the previous month. Yet, the average UK house price is £1,800 off the peak recorded in June 2022.

In conclusion, the early 2024 housing market trends show regional disparities with the strongest price growth in parts of northern England and slower growth in London. Moderate increases are expected to continue through 2024 and beyond, influenced by economic factors and policy changes.