Residential property prices in the UK increased by an average of £10,000 in the year to October with the median property costing £292,000, according to the latest figures from the Office for National Statistics.
A typical UK home is now selling for an estimated £292,000 – which is an increase of 3.4% on the same time last year when the average property was going for £282,000.
In England, the average price rose by 3% year on year to £309,000, while in Wales it was up by 4% to £222,000. Scotland saw prices increase by 5.5% to £197,000. In Northern Ireland, the average house price rose by 6.2% to £191,000 year on year.
In London, the average property dropped £7,000 between September and October with prices now down £11,000 in two months. The average property in the capital cost £520,000 in October, down from £531,000 in August.
Nick Leeming, Chairman of Jackson-Stops, said: “The final few weeks of 2024 have provided the market with stable footing for a busier year ahead. While a continued stream of announcements from the government benched around housebuilding and planning permission promise to bring greater supply to the market, sellers continue to hold a slight advantage as we head in to next year.
“Whilst there is an understandable focus on enabling first-time buyers to get onto the property ladder from the industry, attention must also be paid to older homeowners to incentivise downsizing and improve market fluidity. As well as downsizers and first-time buyers, we expect to see more buying decisions being motivated by the strong competition for school catchment areas following wider policy changes.
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “Another month of house price growth is an early Christmas present for sellers looking to get a good price on their home.
“Modest but sustained levels of growth has been the trend of the year for the property industry, reassuring homeowners that economic challenges have not devalued their property, while not deterring potential buyers from securing a new home.”
Looking at the rental sector, ONS data revealed that average private rents rose to 9.1% in November, just below a record rise of 9.2%, recorded in March.
The average private rent in Britain was £1,319 per month in November – £110 higher than in November 2023.
Average rents increased to £1,362 (+9.3%) in England, £772 (+8.0%) in Wales, and £980 (+6.5%) in Scotland, in the 12 months to November. In Northern Ireland, average rents increased by 9.0% in the year to September 2024.
ONS head of housing market indices Aimee North said: “Rental prices climbed again in the year to November with the average private rent in Great Britain now around £1,300 per month.
“Average rent increases continue to be highest in London while annual rent inflation reached a record high for England.”
In England, rent inflation was highest in London (11.6%) and lowest in Yorkshire and The Humber (5.7%).
Nathan Emerson, CEO at Propertymark, said: “The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate. It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next ten years.
“It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep a objective oversight on a system that is increasing coming under additional pressure to keep pace with ever increasing demand.”
Gareth Atkins, managing director of lettings at Foxtons, added: “Rental demand was steady and persistent in 2024, even as the number of listings increased – reaching 7% higher than 2023 [year to date] by the end of November. So, although this market had more of the traditional seasonality than we’ve seen in recent years, it was still highly competitive throughout, with an average of 15 renters per each new listing year to date.
“As we step into 2025, the lessons of 2024 are clear: success requires not just property, but proactive, intelligent market engagement for buyers, sellers and landlords alike.”
Modest house price growth forecast for 2025
