Spring bounce? Average house price rises for second consecutive month

Average UK house prices rose for a second month in a row during April, Land Registry data shows.

The latest Land Registry House Price Index puts the provisional estimate for annual growth at 1.1% in April, up from 0.9% in March.

It is the second consecutive month of growth.

Average prices were also up on a monthly basis by 0.3%. This puts the average UK house price at £281,373.

Of English regions, annual house price inflation was highest in the North West, where prices increased by 3.8% in the 12 months to April 2024. 

London was the English region with the lowest annual inflation, where prices decreased by 3.9% in the 12 months to April 2024.

Commenting on the report,  Tom Bill, head of UK residential research at Knight Frank, said: “House price growth this Spring has effectively been squashed by rising mortgages rates and the fact supply is growing faster than demand. Higher-than-expected services inflation today will only increase downwards pressure on prices, with the first rate cut not expected for another four months. That said, demand per listing has rarely been lower in recent years, which means buyers who do their homework may find themselves in an advantageous position.”

The time lag with Land Registry records means many of these deals will have been completed earlier this year or at the end of 2023 and don’t necessarily reflect current market sentiment.

Nick Leeming, chairman of Jackson-Stops, said: “Despite gloomy weather so far this year, vendors are still driven to get their homes on the market. At Jackson-Stops, we've witnessed this momentum firsthand with an 18% uptick in new property listings hitting the market, as vendors look to take advantage of robust buyer demand. The expanding inventory provides much-needed supply for buyers who have been hampered by limited choices over the past few years and signals a step-change in the market – vendors now need to be competitive with their listing price to standout.”

He said regional hotspots for Jackson-Stops such as Chipping Campden, Midhurst and Sevenoaks saw a significant uptick in new buyer enquiries, demonstrating the demand for homes in popular commuter towns and rural hubs across England.

Leeming added: “It's worth noting that the General Election had not yet been announced during this period, so next month's figures will reflect the impact of political change. However, early indicators from the Jackson-Stops network suggest that the election has had little impact on buyer and vendor sentiment. Life's pivotal moments continue to drive housing transactions regardless of the political climate. The ‘must-move’ market persists, while activity at the higher end has gained momentum.”