"Sales activity, in part driven by first-time buyers trying to secure purchases before the end of stamp duty relief, has continued to drive house prices upwards. "
- Emma Cox, MD of real estate at Shawbrook
Average house prices in England increased by 3.0% in the 12 months to October, up from a revised figure of 2.4% in the 12 months to September, according to the latest UK House Price Index from the Land Registry.
Despite the rise, prices remain below the average UK house price annual inflation of 3.4% in the 12 months to October 2024.
The North East had the highest growth, where the annual percentage change increased by 4.7% in the 12 months to October. The lowest annual percentage change was in London, where prices increased by 0.2%, although up from a price decrease of 0.3% in the 12 months to September.
On a non-seasonally adjusted basis, average house prices in England increased by 0.1% between September and October compared with a decrease of 0.5% in the same period 12 months ago. On a seasonally adjusted basis, average prices in England increased by 0.4% between September and October.
In England, semi-detached houses showed the highest annual percentage change out of all property types, increasing by 3.5% in the 12 months to October 2024 to £298,000. Flats and Maisonettes showed the lowest annual percentage change, increasing by 1.8% in the 12 months to October 2024 to £257,000.
Emma Cox, MD of real estate at Shawbrook, commented: “Sales activity, in part driven by first-time buyers trying to secure purchases before the end of stamp duty relief, has continued to drive house prices upwards.
“This has counteracted the usual winter slowdown; though the impact may be temporary and a slump in activity once the relief comes to an end could be seen in the longer term. With the spotlight firmly on the Government’s ambitious housebuilding targets, removing help for first-time buyers - who make up the majority of new build purchases - could act as a significant barrier to building 1.5 million new homes."
Nathan Emerson, CEO at Propertymark, said: “Looking at the entire year in view and against a backdrop of challenging economic conditions and political change, it is hugely encouraging to witness such a strong year of overall growth within the housing market.
“As we head across the winter months, we are expecting to see house transactions pick up beyond what is normally expected across England and Northern Ireland for this time of the year, as people look to complete on a sale before new stamp duty thresholds take effect next April."
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “With inflation rising to 2.6%, the Bank of England is expected to adopt a Grinch position and delay any further rate reductions until the new year at least.
“This may not matter too much on the mortgage front with several lenders reducing rates regardless in the past few days as they try to meet their sales targets. Borrowers will be hoping that the start of next year sees a continuation of this with January sales as lenders attempt to get off to a strong start by reducing rates.
“With stamp duty rising in April, this could focus the mind of buyers in the early months of the year, resulting in a busy spring market."
