Average UK house price annual inflation was 1.8% (provisional estimate) in the 12 months to March 2024, compared with negative 0.2% (revised estimate) in the 12 months to February 2024.
This is according to the latest data from the ONS UK House Price Index.
The average UK house price was £283,000 in March 2024 (provisional estimate), which is £5,000 higher than 12 months ago. Average house prices in the 12 months to March 2024 increased in England to £299,000 (1.0%), increased in Wales to £214,000 (1.3%) and increased in Scotland to £192,000 (6.7%). The average house price increased in the year to Q1 (Jan to Mar) 2024 to £178,000 in Northern Ireland (4.0%).
On a non-seasonally adjusted basis, average UK house prices increased by 0.7% between February 2024 and March 2024, compared with a decrease of 1.2% during the same period 12 months ago.
Of English regions, annual house price inflation was highest in Yorkshire and the Humber, where prices increased by 5.0% in the 12 months to March 2024. London was the English region with the lowest annual inflation, where prices decreased by 3.4% in the 12 months to March 2024.
Commenting on the lates figures Propertymark chief executive Nathan Emerson said: “The housing market is a key indicator regarding wider economic health, and it is extremely positive to see further uplift and confidence within the housing sector.
“As inflation tracks downwards, it is widely anticipated the Bank of England will consider a reduction in its base rate and at this point we hope to see lenders offering a much wider range of competitive and highly targeted deals. “
Atom bank head of mortgages Richard Harrison was also positive on the new data:
“The increase in house prices reported today brings to an end a long run of falls, and marks a clear turnaround in confidence among buyers. While inflation has fallen by less than expected today, denting hopes of an imminent reduction in base rate, the reality is that cuts are coming and that is bringing would-be purchasers back to the market.”
Former RICS residential chairman and London estate agent Jeremy Leaf said that while this relatively modest acceleration in house-price increases, which includes mortgaged and cash sales, was a little dated it showed how even anticipation of today’s drop in inflation was giving another boost to housing market activity.
“Confidence is such an important factor when it comes to home-buying decisions and there is no doubt that the cost of living too plays a huge part when buyers are deciding whether to take on further debt.
He added: “On the ground, expectations are rising that mortgage rates are continuing on their journey south, even if they are not moving as far or as soon as many had expected.”
