The official statistics show that the average price of a property in the UK was £293,000 in August, up 1.5% compared to the previous month.
This is £8,000 higher than 12 months ago.
Nations and regions
Average house prices in the 12 months to August 2024 increased in England to £310,000 (2.3%), in Wales to £223,000 (3.5%) and in Scotland to £200,000 (5.4%). The average house price increased in the year to Q2 (Apr to Jun) 2024 to £185,000 in Northern Ireland (6.4%).
Annual house price inflation was highest in the North West, where prices increased by 4.6% in the 12 months to August 2024.
The South West was the English region with the lowest annual inflation, where prices increased by 0.8% in the last year.
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In London, house price inflation was 1.4%.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Right now, things are looking more positive. The Bank of England rate cut, and expectations of more to come, mean the average two-year fixed rate mortgage has fallen 5.37% and figures show a renewed enthusiasm among buyers. However, this is going to take months to filter through into the official figures.
“For those getting onto the property ladder right now, higher prices pose a challenge, but lower mortgage rates should help offset at least some of it.”
Aaron Milburn, UK managing director of Pepper Advantage, added: “All eyes are now on the upcoming Budget. On the supply side, buy-to-let mortgage holders — already struggling with higher rates — will be wary of potential increases in capital gains, while housebuilders will be watching for the green light to start building.
“Meanwhile, consumers are continuing to keep an eye on budgets after a challenging few years. These complex variables and the prospect of further rate cuts will dictate how the housing market fares heading into 2025.”
