The average house price in the UK is £266,400 as of July 2024 (published in August 2024).
Property prices are now at 0.5% inflation compared to a year ago. However, the average UK house price is set to rise by 2.5% by the end of the year.
Key figures
Average house price in May 2024 | Average house price in June 2024 | Average house price in July 2024 | Year-on-year change (£) | Year-on-year change (%) | |
All property | £265,400 | £265,600 | £266,400 | +£1,200 | +0.5% |
Detached houses | £447,400 | £449,000 | £450,100 | -£2,040 | -0.5% |
Flats | £191,000 | £191,700 | £191,900 | -£370 | -0.2% |
Semi-detached houses | £270,100 | £271,200 | £272,100 | +£1,840 | +0.7% |
Terraced houses | £233,500 | £234,300 | £235,200 | +£2,520 | +1.1% |
The graph below shows how the UK’s average house price has changed in the last 10 years.
My Home: track your home's value
Discover how much your home could be worth, track its changing value over time and find out what homes in your area have sold for.
Housing market activity stronger than last year
All key measures of sales market activity are higher than they were in 2023. This has largely been supported by economic growth and rising consumer confidence.
Buyer demand for homes is a fifth higher than this time last year. Additionally, new sales agreed are almost a quarter higher, building on the increased momentum in sales from earlier in the year. Mortgage rates have fallen to an average of 4.5% for a 5-year fixed rate at 75% loan-to-value.
Sellers continue to bring homes to market at an above-average rate. Many of these sellers are also buyers, which explains why the number of sales agreed continues to increase.
The stock of homes for sale continues to increase and now stands at a 7-year high of 33 homes per agent, giving buyers even more choice. A higher supply of homes will keep headline price inflation in check over 2024 and into 2025. Serious sellers must price realistically to agree a sale within a reasonable time.
No material impact from August base rate cut
The long-awaited cut in the base rate in August was welcome news for the wider economy and consumer sentiment, but it has had no material impact on levels of buyer demand compared to the underlying trend over recent weeks.
The real reason buyer demand for homes is 20% higher than last year is down to a fall in demand over summer 2023, which was in response to the spike in mortgage rates.
Save money with Mojo Mortgages
Allow award-winning Mojo to show you the best rates available to you. A whole-of-market broker, Mojo work with over 70 lenders. And they won't charge you a penny for their services.
However, our data did register a modest increase in the number of new sales agreed in the days following the base rate reduction as wary buyers waited for a rate cut to agree a sale.
The good news is that there is sufficient buyer demand to support rising sales volumes. The number of sales agreed rising by 23% is a truer reflection of the health of the sales market which remains on track for 10% more sales than 2023.
UK house prices increase 1.4% so far this year
A modest recovery in house price inflation is occurring due to rising numbers of new sales agreed, as well as buyers paying a greater proportion of the asking price.
Our UK index shows that the average UK house price has risen by 1.4% so far since the beginning of the year and is on track to be 2.5% higher over 2024.
The annual rate of inflation in our UK house price index is lower at +0.5% as it includes price falls over the latter part of 2023.
Over the last decade, house price falls have only occurred during Q4 2022, Q3 2022, and Q4 2022. These falls were all in response to higher mortgage rates. This year has seen a return to low rates of house price inflation, albeit slowing in the last three months.
Overall price trend is upwards but there are some localised falls
The improvement in house prices over the year-to-date is being felt across most areas of the country.
Annual house price inflation ranges from -0.9% in the east of England to +5.1% in Northern Ireland.
Price inflation has turned positive in London (+0.2%), while prices are seeing small falls in the South East (of England), South West (of England) and East Midlands.
There remain pockets of the country where house prices continue to see small falls on both a quarterly and annual basis. This includes Taunton (TA, -2.0%), Dartford (DT, -1.3%), Enfield (EN, -1.1%) and Harrogate (HG, -1%). From this data we can see that house prices are still adjusting to the impact of higher borrowing costs in local areas.
However, house prices are seeing above-average annual gains in more affordable housing markets, which are often in proximity to larger cities. This includes Wolverhampton (WV, 3%), Oldham (OL, 2.8%) and Wakefield (WF, 2.7%).
Across the Scottish borders, house prices are rising even faster, from Dumfries and Galloway (DG, 4.4%) to Galashiels (TD, 3.1%), as well as in the Falkirk postal area (FK, 3.1%).
1 in 5 homes have cut asking price by more than 5%
While measures of market activity are higher and price inflation is positive, it’s important that sellers remain realistic on pricing, especially if they are serious about moving home.
The continued growth in the supply of homes for sale is boosting choice for buyers. This will keep UK house price inflation in check into 2025.
Buyers remain price-sensitive as their purchasing power has been eroded by higher mortgage rates. This is slowly being offset by faster income growth but there is further to go to fully repair affordability.
We’ve found that 1 in 5 homes that were listed for sale in August have had an asking price reduction of 5% or more to attract buyer interest. This is above average, but lower than the 23% high recorded last autumn, when higher mortgage rates hit demand and house prices fell.
There is no major variation in asking price cuts across different parts of the country, but reductions are more common for 1 and 2-bed flats.
Homes that need an asking price cut take more than twice as long to sell as homes without asking price changes. Our data shows time to agree a sale is 28 days for a home with no price reduction, and 73 days for a home with a 5%+ reduction. Getting the asking price right at the outset is essential to secure a timely sale.
Housing market outlook for 2024
The housing market is more balanced now than it’s been at any time over the last 5 years.
Lower mortgage rates and an improving economic outlook has brought more sellers and buyers into the market, supporting sales volumes and business plans for builders, estate agents and lenders.
How much lower mortgage rates will move depends on expectations for base rates.
Our view is that average mortgage rates will remain above 4%, which is sufficient to support more home moves and sales. Healthy growth in household incomes remains as important as borrowing costs for the overall health of the housing market as we look ahead into 2025.
House Price Index - country, region and city summary
Download the House Price Index August 2024
My Home: track your home's value
Discover how much your home could be worth, track its changing value over time and find out what homes in your area have sold for.
Previous House Price Index reports
See more stories from our House Price Index
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 August 2024 uses the most recent full data available up to July 2024. We revise previous data where needed to ensure the most accurate representation of the market at any given time.