The average house price in the UK is £265,600 as of June 2024 (published in July 2024).
Property prices are now at 0.1% inflation compared to a year ago. However, the average UK house price is set to rise by 1.5% by the end of the year.
Key figures
Average house price in April 2024 | Average house price in May 2024 | Average house price in June 2024 | Year-on-year change (£) | Year-on-year change (%) | |
All property | £264,800 | £265,400 | £265,600 | +£310 | +0.1% |
Detached houses | £447,700 | £447,400 | £449,000 | -£2,750 | -0.6% |
Flats | £190,900 | £191,000 | £191,700 | -£1,370 | -0.7% |
Semi-detached houses | £270,300 | £270,100 | £271,200 | +£1,910 | +0.7% |
Terraced houses | £233,300 | £233,500 | £234,300 | +£1,710 | +0.7% |
The graph shows how the UK’s average house price has changed in the last 10 years.
Housing market is the most balanced it’s been in five years
The housing market continues to adjust to +4% mortgage rates with positive signs of increased activity. More sellers continue to list homes for sale, and more sales are being agreed. Buyers are also paying a greater proportion of the asking price as confidence improves.
House prices have been rising slowly across the UK since January, reversing the price falls recorded over 2023. Market activity will continue to improve, but prices will be kept in check by greater supply and affordability constraints.
House price inflation remains static, but is still negative in south
UK house prices have edged 0.1% higher over the last 12 months, increasing by just £310 to £265,600. Annual price inflation ranges between -1.2% in the East of England to +3.9% in Northern Ireland.
We expect house prices to continue to increase slowly over the second half of 2024. This means the annual rate of UK house price inflation will increase towards +2% by the end of the year.
Modest price rises help motivate sellers to list their home for sale, but a return to faster house price inflation would be unwelcome. This is because affordability remains a major constraint on market activity, especially in southern England.
The housing market requires a 12-24 month window where incomes rise faster than house prices to help reset affordability. Incomes are set to rise by 4.5% in 2024, and we also expect incomes to continue to rise faster than house prices in 2025.
Supply of homes for sale continues to grow
One important feature of the current housing market is that there are more homes for sale than at any point in the last six years. This is improving choice for home buyers and supporting more sales.
The average estate agent has 33 homes for sale, which is 16% higher than a year ago. More supply means more sellers, most of whom are also buyers. Many would-be movers are upsizers who are looking further afield to get the home and features they are looking for, while also seeking value for money.
1 in 10 homes for sale are formerly rented homes
Over 1 in 10 (12%) homes for sale currently were previously rented - a proportion that has broadly held steady over the last 3 years. Tax changes introduced in 2016, higher mortgage rates and greater regulation of rented property have all led to more landlords selling.
However, not all these homes leave the rented market. We find that 40% remain as rentals as they’re either bought by a new landlord or let out by the current landlord who decides not to sell.
Sales agreed are up 16% year-on-year
A greater supply of homes for sale and more buyers has resulted in a 16% increase in the number of sales agreed since last year. A long-run index of weekly sales shows how sales in the first half of 2024 have been stronger than in 2023 and the pre-pandemic years.
This is positive and reveals a more balanced housing market: an increase in sales volume but with a greater stability in price inflation. Overall, sales are up across the whole of the UK.
Buyers paying a greater % of the asking price
Buyers are paying a greater proportion of the asking price than they were last year when higher mortgage rates hit demand.
UK buyers are currently paying 96.8% of the asking price, which is up from 95.6% last October. This is on par with the long-run average, and points to continued house price inflation. In value terms, this averages at £16,600 below the asking price for sales agreed in June 2024, compared to £23,000 below the asking price in October 2023.
Demand and buying power in southern England have been hit the hardest by higher mortgage rates, as prices here have larger falls. Buyers were paying less than 95% of the asking price last year, but this has recovered to 96.3%.
The impact of higher mortgage rates was less pronounced across the rest of the UK, which explains why the proportion of the asking price achieved declined by a smaller amount and has stabilised at 97.1%.
Outlook for the rest of 2024
For the rest of the year, we expect continued modest growth in house prices. This will be greater outside the south of England where affordability is less of a constraint on price inflation. Sales remain on track for 1.1m in 2024, which is still 10% lower than the 20-year average.
The timing of the first base rate cut is important. It will deliver a boost to consumer confidence and market activity rather than leading to any major reduction in mortgage rates for new home buyers.
Nothing in the King’s Speech or the new Government’s plans has any material impact on the outlook for the market in the next 12-18 months. Economic growth and increasing home building will benefit homebuyers and renters in the long run. However, affordability as well as access to home ownership and rented housing remain challenges for a significant proportion of households on lower incomes.
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About our House Price Index
The Zoopla House Price Index (HPI) is a repeat sales-based price index, using sold prices, mortgage valuations and data for recently agreed sales. The index uses more input data than any other and is designed to accurately track the change in pricing for UK housing. It’s a revisionary index and non-seasonally adjusted.
The HPI for May 2024 uses the most recent full data available up to April 2024. We revise previous data where needed to ensure the most accurate representation of the market at any given time.