House prices expected to rise 1.5% by end of year

House prices are set to rise by 1.5% by the end of the year, as the average house price in the UK reached £265,600 in June, Zoopla has revealed.

The firm’s house price index showed that property prices jumped by 0.1% year-on-year, although this is expected to improve as the year progresses.

Furthermore, there was a 16% annual increase in the number of agreed sales, because of a greater supply of homes.

Zoopla said that modest price rises are expected to help motivate sellers to list their homes for sale, but it added that a return to faster house price inflation would be "unwelcome", due to affordability remaining a constraint on market activity, especially in southern England.

It stated that the housing market requires a 12-to-24-month window where incomes rise faster than house prices to help reset affordability. Incomes are set to rise by 4.5% in 2024, with Zoopla expecting incomes to continue to rise faster than house prices in 2025.

In terms of regional house prices, there was a North/South divide in annual changes, with the East of England (1.2%), South East (1%) and South West (0.7%) all recording drops in house prices.

London also recorded a house price drop of 0.3% year-on-year.

Meanwhile, the North West (1.5%) was the best performing English region, alongside the North East (1.3%) and Yorkshire and Humber (0.6%).

Across the home nations, Northern Ireland (3.9%), Scotland (1.4%) and Wales (1.1%) all recorded annual house price increases.

Risk director at Legal & General Surveying Services, Malcolm Webb, said: "It’s likely the rise in house prices reflects growing demand as a result of fresh cuts from lenders and increased confidence in the market. However, it is also a reminder that buying a house is one of the biggest financial purchases many people will undertake in their lifetime, and should not be a decision that is taken lightly, or without seeking the correct professional advice.

"Perhaps one of the more overlooked aspects of the homebuying process is commissioning a home survey, with only one in ten choosing to do so. With average house prices now sitting at £265,600 on average, it’s more important than ever to get a survey to ensure they have as much information as possible about the true condition and value of the property they are buying."



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.