UK house prices rise for fourth consecutive month in June

Average UK house prices rose on an annual basis for the fourth consecutive month in June.

According to the latest figures released by the Office for National Statistics (ONS), average prices increased 2.7% in the 12 months to June 2024.

The annual growth, which is unchanged from the revised estimate for the 12 months to May 2024, takes the average price of a home in the UK to £288,000.

The four consecutive months of annual price increases follow eight months of annual falls in prices.

June saw a 0.5% monthly increase in house prices on May.

Average house prices increased in England to £305,000 (2.4%), in Wales to £216,000 (1.8%), and in Scotland to £192,000 (4.3%), in the 12 months to June 2024.

Northern Ireland saw the highest growth, both monthly (3.6%) and annually (6.4%)

The East Midlands (-0.5%) and the South West (-1%) were the only areas that experienced a decline in prices month-on-month.

No region experienced a drop in prices over the year, but London recorded the smallest level of growth (0.6%)

Mobeen Akram, new homes director at Mortgage Advice Bureau said the announcement of the figures, coupled with the 5% interest base rate, was a “welcome relief” for those waiting for positive change in the housing market.

However she said that the industry “may still experience a slow market over the next while, as we move through the natural summer lull”.

“Longer-term, however, we can still expect house prices to start falling,” she said. 

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“We’d hope to start seeing wages outpace inflation, which would mean that affordability would improve for first time buyers. 

“Nevertheless, we’re unlikely to witness a drop in the number of first time buyer numbers during 2024, which is positive for the market.” 

Emma Cox, managing director of Real Estate at Shawbrook, added that “the Government’s renewed focus on revitalising the construction sector”, through increased housebuilding targets and planning reforms, “should help to boost the supply of high-quality rental stock, which is a positive development for the market”.