Key statistics for September 2024
In September 2024, the average price of a house in the UK was £292,000. The annual change in house prices increased by 2.9%. The monthly change in prices decreased slightly by 0.3%. The monthly index figure (with January 2015 = 100) for the UK was 153.1.
Revised Index Estimates
In the September 2024 edition, the UK House Price Index revised estimates from January 2022 using price data processed outside the usual 12-month review period for the index. These revisions are expected to cause significant changes in the data, and users should take them into account. In the October 2024 edition, the House Price Index reverts to the usual 12-month review period. Impact of future revisions
Users should note that new revisions may result in higher than usual estimates of prices. This includes changes in new build prices, an area where there is likely to be greater uncertainty than usual. These revisions are part of a regular update to ensure the accuracy of the data presented.
Methods and methods used in measurement
The UK House Price Index price levels are derived by averaging the prices of a reference group of properties sold in January 2015. Inflation rates are then applied across individual periods to produce the full time series. Over time, the types of properties being sold change, requiring a periodic update of the reference group.
Upcoming updates to the index
On 19 February 2025, the index will be updated to use January 2023 as a new base period. This update will ensure that the index better reflects the types of properties currently being sold in the UK. The price levels of the index will move up or down based on these revisions.
but inflation rates will remain the same.
Economic Statement: UK Housing Market Analysis to September 2024
UK house price inflation averaged 2.9% in the 12 months to September 2024, up slightly from the revised estimate of 2.7% in August 2024. This represents a significant increase in prices over the year, suggesting that the housing market is still experiencing inflationary pressures.
UK House Prices
In September 2024, the average house price in the UK was £292,000, up £8,000 on the same month last year. This increase reflected growth in house prices in most areas of the UK, with England recording an average price of £309,000, up 2.5%, while Wales saw a 0.4% increase to £217,000. In Scotland, prices rose by 5.7% to £198,000. In Northern Ireland, prices rose by a significant 6.2%, with the average price rising to £191,000 in Q3 2024 (July to September).
Monthly price changes
Between August and September 2024, UK house prices fell by 0.3% on a non-seasonally adjusted basis, compared with a 0.5% fall in the same period last year. On a seasonally adjusted basis, prices fell slightly by 0.1% over the same period.
Regional variations in the UK
In terms of annual house price inflation, the North East of England was the region most affected, recording a 6.5% increase in the 12 months to September 2024. London, on the other hand, was the region with the lowest inflation rate, with prices falling by 0.5% over the same period.
Market Activity Indicators
According to the RICS Housing Market Survey for September 2024, the market has seen a sustained improvement in property activity, with measures of demand, sales and new listings returning to positive levels.
UK Housing Market Conditions – Q3 2024
The Bank of England’s Business Conditions Brief for Q3 2024 reported that the recent cut in bank interest rates has helped improve sentiment in the secondary housing market. However, this improvement has not yet been reflected significantly in sales or agreed prices.
Real Estate Transactions Analysis
The UK Real Estate Transactions Statistics from HMRC showed that in September 2024, there were an estimated 92,000 residential property transactions worth £40,000 or more. This represents an increase of 8.9% compared to the same month in the previous year (September 2023). Transactions increased by 0.9% between August 2024 and September 2024 on a seasonally adjusted basis.
Mortgage Approvals
The Bank of England’s Money and Credit Report for September 2024 reported that mortgage approvals for home purchases, an important indicator of future borrowing, rose to 65,600 in September 2024. This is the highest level since August 2022, when it stood at 72,000.
House Price Index
The average annual inflation rate for UK house prices was 2.9% in the 12 months to September 2024, slightly higher than the revised estimate of 2.7% in the 12 months to August 2024.
The average UK house price was £292,000 in September 2024, up £8,000 on the same month last year. House prices across the region saw a significant increase.
with England up 2.5% to an average of £309,000, and Wales up 0.4% to £217,000. In Scotland, prices rose 5.7% to an average of £198,000. In Northern Ireland, the average house price rose 6.2% to £191,000 in Q3 2024 (July to September).
