The UK’s house prices climb for third consecutive quarter

The UK’s house prices have continued their upward trajectory, marking the third consecutive quarter of growth in 2024, one property market index reveals.

The research from Benham and Reeves reveals a 0.9% increase in house prices during Q3 of this year.

The index, which combines data from Halifax, Nationwide, Rightmove and the UK House Price Index, provides a comprehensive overview of the property market.

It highlights the evolving dynamics between mortgage approved prices, asking prices, and sold prices.

Positive year for the property market

Director of Benham and Reeves, Marc von Grundherr, said: “2024 has been a far more positive year for the property market and this is becoming abundantly clear when analysing house price trends across each segment of the market.

“We’ve seen consistently positive growth with respect to overall house prices across all three quarters of this year so far and this is despite the fact that buyers are still having to contend with significantly higher interest rates than they’ve become accustomed to in recent years.”

He adds: “What is clear is that sellers are taking a more pragmatic approach to selling, with the gap between the mortgage approved price of buyers and the asking price expectation of sellers narrowing.

“As a result, we haven’t seen the previous stalemate across the market whereby sellers refuse to budge on price, whilst buyers simply can’t afford to match them.”

Average UK house price

The average UK house price in Q3 was £311,154, a 0.9% quarterly increase and a 2.2% annual rise.

In London, the average house price remained flat quarter-on-quarter at £574,254 but rose 1.1% year-on-year.

The gap between mortgage approved prices and asking prices has also narrowed.

This gap fell from 35.5% in Q2 to 32.9% in Q3.

In London, the gap contracted from 33.2% to 30.4%.

The gap between asking prices and sold prices has closed with the average sold price 21.4% below the average asking price in Q3 – down from 24.1% in Q2.

In London, the gap dropped from 25.7% to 22.9%.