UK House Prices Reflect Resilience with Third Consecutive Monthly Increase

January 12, 2024

Share to: 

uk property investment

Article Summary

Buy - to - let
  • According to Halifax, the nation's largest mortgage lender, property prices experienced a commendable 1.1% growth in December, following a 0.6% rise in November and a 1.2% increase in October.
  • This encouraging trend is particularly noteworthy as it represents the first instance of annual growth in the UK housing market reported by Halifax in eight months, with prices up by 1.7% year on year in December.
  • Mortgage approvals for house purchases also exhibited a positive trend, rising to 50,100 in November from 47,900 in October, indicating a strengthening demand.

Introduction

In a surprising turn of events, UK house prices have seen a positive trajectory for the third consecutive month, demonstrating resilience despite earlier forecasts of a downturn. According to Halifax, the nation’s largest mortgage lender, property prices experienced a commendable 1.1% growth in December, following a 0.6% rise in November and a 1.2% increase in October. The average UK home is now valued at £287,105, marking a £3,000 increase from November.

This encouraging trend is particularly noteworthy as it represents the first instance of annual growth in the UK housing market reported by Halifax in eight months, with prices up by 1.7% year on year in December. Marc von Grundherr, a director of the London estate agency Benham and Reeves, describes this as a “Christmas miracle” amidst the challenges of the past year.

While the growth has been attributed to a shortage of properties on the market rather than robust buyer demand, there is optimism in the air. Halifax’s Director of Mortgages, Kim Kinnaird, noted that the easing of mortgage rates could potentially boost buyer confidence in the coming months.

Mortgage approvals for house purchases also exhibited a positive trend, rising to 50,100 in November from 47,900 in October, indicating a strengthening demand. Despite this positive momentum, analysts at Goldman Sachs caution that UK homeowners might face a £19 billion increase in mortgage costs as fixed-rate deals expire, potentially putting strain on household finances.

Halifax, while acknowledging the recent positive growth, maintains a cautious outlook, expecting house prices to decline by up to 4% this year due to high-interest rates and inflation affecting mortgage affordability. The lender projects a reduction of 2% to 4% in the price of an average UK property in 2024.

Jonathan Hopper, the chief executive of Garrington Property Finders, sees this as a turning point, stating, “We should be wary of reading too much into a couple of months of positive price data, but there is a growing perception on the property front line that things are turning a corner.”

In summary, despite earlier predictions of a downturn, the recent positive growth in UK house prices, coupled with increasing mortgage approvals, paints a more resilient and hopeful picture for the property market. Investors and potential buyers may find this encouraging as the market navigates through the uncertainties of 2024.

Conclusion

In summary, despite earlier predictions of a downturn, the recent positive growth in UK house prices, coupled with increasing mortgage approvals, paints a more resilient and hopeful picture for the property market. Investors and potential buyers may find this encouraging as the market navigates through the uncertainties of 2024.

To find out about more of some of the most attractive new-build and regeneration projects we have to offer, click here.

Share to: 

Explore our property in Manchester

The Bailey

From £249,950

Yield: 13.5%
   In Construction
   Est. Q4 2024
   Lease Length: 250 Years

Related Articles

Manchester revealed as the UK’s best connected city

Manchester has been announced as the UK’s best connected city for transport and communications, in a recent report by Transport for Wales.

Read More →

Manchester named top UK city for Foreign Direct Investment

Manchester was recently recognised as a leading city for foreign direct investment in the UK, coming only second to London.

Read More →

Red Bank Manchester – A Regeneration Project and Investment Opportunity

Manchester has become one of the UK’s best property markets, with thousands flocking to the city each year to work, study, and play…

Read More →

Manchester named ‘creative capital’ of the UK

For many property investors in the UK’s 2023 buy-to-let market, the standout feature has been the remarkable rental growth.

Read More →

Property Investment Thrives as Rental Prices Increase, Landlords Seeing an Extra Months Rental Income per year

UK house prices have seen a positive trajectory for the third consecutive month, demonstrating resilience despite earlier forecasts of a downturn.

Read More →

Manchester Secures Coveted Spot on The New York Times’ 2024 ’52 Places to Go’ List

For many property investors in the UK’s 2023 buy-to-let market, the standout feature has been the remarkable rental growth.

Read More →

Come talk to our professionals to learn more about the UK property market now!

Learn more about investing in Manchester by downloading our guide today