UK

House prices have risen by 1.1% in the year to April

UK house prices

The ONS said average house prices increased by 1.1% in the 12 months to April, up from 0.9% in March

House prices across the UK have risen by 1.1% in the year to April, with the average house price now sitting at £281,000, making it even harder for those hoping to jump on the housing ladder.

The ONS said average house prices increased by 1.1% in the 12 months to April, up from 0.9% in March. Average private rents jumped by 8.7% in May, down from 8.9% in April.

It was the second consecutive month with an annual increase in prices, following eight months of annual declines in prices.

In the 12 months to April 2024, average house prices rose in England to £298,000 (a 0.6% annual rise), in Wales to £208,000 (up 0.4%) and in Scotland to £190,000 (up 4.5%).

Average house prices rose by 4% annually to £178,000 in Northern Ireland.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said the price increases “piles even more pressure on first-time buyers and those hoping to climb the property ladder.”

The rise in house prices is especially pronounced in new-build homes, which saw a 15.3% rise compared to a 1.3% drop in existing property prices.

Those who are forced to rent due to being unable to afford a deposit are feeling the squeeze.

Rents rose to £1,301 (8.6%) in England, £736 (8.5%) in Wales, and £957 (9.3%) in Scotland, in the 12 months to May. In Northern Ireland, average rents rose by 10.3% year-on-year in March.

In England, rents inflation was highest in London (10.1%) and lowest in the North East (6.1%).

Across Britain, average rent was highest in Kensington and Chelsea (£3,397) and lowest in Dumfries and Galloway (£480).

Anna Clare Harper, Chief Executive Officer of sustainable investment adviser GreenResi, said: House prices have risen in nominal terms by 1.1% in the year to April, to £281,000. Nevertheless, for most younger people, this is irrelevant.

She added: Half the UK population are under 40, and for most of these, the important question is not ‘how fast are house prices increasing?’ The question is ‘can I afford to live in a decent home?’ And the answer for most is related more to regulation than to house prices.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply