August Housing Market Update: ONS Reports Price Stagnation - Fraser & Co Estate Agents

August Housing Market Update: ONS Reports Price Stagnation - Fraser & Co

The latest data from the Office for National Statistics (ONS) has shed light on the state of the UK housing market, and it's a tale of price stagnation. Annual house price growth remained virtually unchanged, inching up by a mere 0.2% in the year leading up to August. This marks the 10th consecutive month of falling annual growth rates, as factors like higher mortgage rates and the increasing cost of living continue to exert downward pressure on the housing market.

 

Average Property Price Holds Steady at £291,000

The ONS reports that the average UK house price now stands at £291,000, which is only a minor variation from the same time the previous year. However, it's important to note that this figure is £9,000 above the recent low point reached in March 2023.

 

Regional Variations in House Prices

Regionally, the North East of England emerged as the top performer, experiencing the highest annual percentage change in the 12 months leading up to August, with a solid 3.6% increase. Despite this, average house prices in the North East are the most affordable, standing at £165,000.

Yorkshire and the Humber, along with the West Midlands, have also shown resilience with annual price increases of 2.2% and 1.1%, respectively. The average property prices now stand at £213,000 in Yorkshire and Humberside and £254,000 in the West Midlands.

In contrast, the East of England saw the lowest rate of annual growth, experiencing a drop of 1.6%. This region, which has an average house price of £351,000, has been grappling with challenging conditions.

The ever-expensive London market, which boasts the highest average house prices at £536,000, recorded a decline in annual house price growth with a fall of 1.4% in the year leading up to August.

On the other hand, Northern Ireland and Scotland have remained relatively strong and both recorded positive annual increases, at 2.7% and 1.1%, respectively. Average house prices in these regions are now at £174,000 in Northern Ireland and £194,000 in Scotland.

Wales saw annual price inflation dip slightly by 0.1%, with average prices now at £217,000, while prices across England remained stable at an average of £391,000, experiencing an annual price increase of 0%.

 

Expert Insights and Optimism

Matt Thompson, Head of Sales at London-based estate agents Chestertons, provided valuable insights into buyer behavior, noting that buyers were adopting more strategic approaches in their property searches in August. He mentioned that some buyers adjusted their budgets or widened their search criteria to find suitable homes. This proactive approach led to increased property sales and new buyer registrations during August.

Mobeen Akram at Mortgage Advice Bureau also shared a positive perspective on the market. He highlighted that despite the challenges, the stability in mortgage rates and house prices is encouraging. Even the new build industry has seen a 3.9% decrease in house prices, potentially attracting more homebuyers for 2024. The UK housing market continues to display resilience and stability, which bodes well as the year draws to a close.

The August ONS report reveals a mixed landscape in the UK housing market, with regional variations and market adaptations to ongoing challenges. Fraser & Co Estate Agents will keep you updated as the property market continues to evolve. Stay tuned for more insightful updates on the real estate landscape.