UK house prices hit two-year high as market growth continues

September 12, 2024

This has been an outstanding year for the UK property market. House price growth and future forecasts are both extremely positive following almost two years of uncertainty.

The resilience of house prices has been proven once again this month as Nationwide – one of the biggest lenders in the UK – has reported average property value growth of 2.4% year-on-year in August 2024.

That is faster than the annual growth rate of 2.1% recorded by Nationwide in July, suggesting that not only is the market growing but the speed of growth is increasing too. It’s hard to imagine a more positive piece of news for anyone involved in the world of property.

It also follows a prediction from Halifax in July that house prices would continue to grow over the rest of 2024.

Amanda Bryden, the head of mortgages at Halifax, said: “Against the backdrop of lower mortgage rates and potential further base rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”

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Price rises are beating positive predictions

What’s more, house prices are growing faster than the most positive predictions from earlier this year.

Just one month ago, leading property portal Zoopla predicted that property values would rise by 2% throughout 2024. With annual growth already at 2.4%, it seems that this prediction will be beaten comfortably.

Richard Donnell, an executive director at Zoopla, said: “The housing market is starting to hot up. There are clear signs of growing confidence among buyers and sellers with many more homes for sale and buyers paying an increased proportion of the asking price.”

Since Zoopla made that prediction, the Bank of England reduced its base rate and the cost of borrowing fell. This caused more people to enter the market and competition for homes to increase, pushing up prices.

Even with new home listings at a seven-year high in the UK, there are still far more buyers than there are available properties.

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How high will house prices go in 2024?

That leads to the obvious question: How high will house prices go by the end of 2024? They are still 3% below the record highs seen before the Truss government delivered its disastrous budget that sent borrowing costs through the roof.

The two years since then have been a long period of recovery, and it is unlikely that we will see those record highs again this year.

However, all indications are that property prices will continue going up over the final four months of 2024 and the year will end in a very positive way.

Nationwide’s chief economist, Robert Gardner, said: "Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”

Tom Bill, head of UK residential research at estate agent Knight Frank, agreed with him, saying: "The UK housing market is in a better place than it was last summer as inflation comes under control and lenders trim their rates.

"Financial markets are pricing in another cut this year and as mortgage rates fall this autumn, it should underpin transactions and modest single-digit price growth."

What’s certain is that property will continue to be the number one investment option in the UK. The overall stability of the market, even through economically troubled times, has been proven. The resilience and reliability of the market make it a superior long-term option to stocks and shares and now appears to be the perfect time to look at UK buy-to-let property for sale.

We are at the beginning of the next big property growth cycle, giving you the opportunity to invest in UK property now and reap the rewards for years to come. By moving quickly, you can act while prices are below the record high and secure a great investment at an effectively below-market rate.

Want to learn more about UK buy-to-let apartments for sale now? Browse our available property opportunities and get in touch with the team today.

UK house prices hit two-year high as market growth continues

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