The main house price reports have provided conflicting information in respect of monthly growth, but have confirmed a small increase in annual growth.

The latest Nationwide House Price Report led with saying that annual growth edged higher in August, but there was a monthly fall of -0.2%.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“UK house prices fell by 0.2% month on month in August, after taking account of seasonal effects, but the annual rate of house price growth continued to edge higher. Average prices were up 2.4% year on year, a slight pickup from the 2.1% recorded in July and the fastest pace since December 2022 (2.8%). However, prices are still around 3% below the all-time highs recorded in the summer of 2022.

“While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).

The Halifax House Prices Report agreed with Nationwide in terms of annual growth, but it reported a figure of +4.3% as opposed to +2.4%,

However, the report conflicted with Nationwide in terms of the monthly change where it reported an increase of +0.8%.

Amanda Bryden, Head of Mortgages, Halifax, said:

“House prices increased by +0.3% in August, following a rise of +0.9% in July, with the typical property now costing £292,505. Annual growth has risen to +4.3%, the strongest rate since November 2022, but this is due in large part to the comparison with weaker growth this time last year.

“Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.

“However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”

The latest Home Track Report suggests that there has been an annual increase of +0.5% with a +1.4% increase in 2024.

Asking Prices

When it comes to asking prices, the latest Rightmove Report said the prices had risen by +0.8%.

Tim Bannister, Rightmove’s Director of Property Science said –

“The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the  better-than-expected summer market.” 

“The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act. Some of this will be pent-up demand from those who had to hit the pause button until now.”

“However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.”

According to Zoopla, asking prices had risen by +1.4% this year.

Zoopla executive director Richard Donnell says: 

“Momentum in the sales market continues to build as mortgage rates drift lower and more and more sellers gain the confidence to list their home for sale.

“Buyers have much greater choice which will support sales numbers, but this will keep prices rises in check. 

“Buyers have less purchasing power than two or three years ago and remain price-sensitive, meaning sellers can’t afford to get ahead of themselves on where to set the right price for their home. 

Our thoughts

There has been a noticeable increase in activity since the end of the summer holiday period.

Although this is usually to be expected, lower interest rates combined with resilient house prices has seemed to result in more people looking to buy whereas they may have previously been more hesitant.

The next 3-6 months in terms of interest rates and house prices should give us an indication of where the market is headed in 2025.