Annual growth slows, but house prices remain up on last year.
The Halifax House Price Index (HPI) for March 2024 was published today – what does it show? Let’s take a brief look.
The latest data reveals that UK house prices grew in March on a quarterly basis, by +2.0%, with annual growth slowing to +0.3%, from 1.6% in February. Compared to last month, the price of a UK property fell -1.0% or £2,908 in cash terms, with the average property now costing £288,430.
According to the index, London continues to have the highest average house price in the UK, at £539,917. Prices in the capital have increased by +0.4% over the last year.
The broader picture is that house prices are up year-on-year. Taking a slightly longer-term view, prices haven’t changed drastically over the past couple of years, and are still almost £50,000 above pre-pandemic levels.
The housing market remains sensitive to the scale and pace of interest rate changes, and with only a modest improvement in affordability on the horizon, this will likely limit the scope for significant house price increases this year.
In summary:
- Property prices grew by +0.3% annually (vs +1.6% last month)
- House prices up +2.0% on previous quarter
- Average house prices fell by -1.0% in March on a monthly basis, following a rise of +0.3% in February
- Typical UK home now costs £288,430, around £2,900 less than last month
- Northern Ireland remains strongest performing nation or region in the UK
The next Halifax House Price Index is scheduled for release on Tuesday 7th May 2024.
Download our market research report: Residential Conveyancing: What does the future hold for 2024?
