As expected, the main point of the most recent Halifax House Price Index is that house prices have dipped slightly, but the market remains robust with average prices remaining higher than last year. Indeed, house prices are up +2.0% on the previous quarter. Kent shows its own positive picture.

We’ve stated before, and it’s the same again this month, it’s vital to look at the regional picture as there is considerable variation in the data. In this report we look at the national and Kent local data to give you the information you need.

The headline stats and facts

• Average selling price: £288,430 (down -1.0% after five months of consecutive rises).
• Property price increases: Annual rate of growth is +0.3%.
• Interest rates: 5.25% (unchanged since August 2023).
• Inflation: 3.411% (nudging downwards in a similar trend to recent months).
• Kent stats: Kent property currently spends an average of 162 days on the market (up 12% on the same time last year), where the average length of time on market was 145 days. Most properties being put up for sale are larger detached properties. The average selling price in Kent has increased slightly on last month from £427,344 to £428,749. It remains 21% higher than in 2021.
• RICS net balance score: RICS data is positive, showing renewed vigour in buyer demand.  New instructions are solidly reflecting this positivity at +21% (was +11% last month). New buyer enquiries are now at +6%, similar to last month.

What does this mean?

While there’s a slight average UK wide drop in average house prices, the overall picture is strong. In light of the higher interest rates since last August, the market was pushed into resetting, yet despite higher borrowing costs, the market remains robust. There’s still further resetting to come, especially as those on expiring fixed rate mortgages have to find new deals with higher rates. Sellers looking for a timely sale will therefore have to price their property accordingly, and this will keep the market relatively flat for now.

While inflation has decreased well, it’s still above Bank of England desired levels. This is feeding through to experts now predicting that rate cuts are likely to come later than previously predicted.

As such, it’s likely that a similar picture in the data will continue for some time yet. Affordability remains an issue for many, but the reality is that home ownership is still attractive.

What about Kent?

While the national picture showed a slight drop in house prices last month, Kent experienced a slight increase. This shows the importance of looking at regional data, and not just a UK-wide snapshot. Demand for properties remains high across the county and as such, it’s likely that demand is pushing up the average prices.

Properties in Kent are taking quite a while to sell at around 6 months, but again this picture is dependent on the type of property. We’re seeing more large 4 bedroom+ detached properties coming to market than smaller flats and starter homes. It remains to be seen if this will level out, but for now it does mean that there are variations within the Kent market. Nonetheless, underlying demand is positive and there’s robust movement in Kent, especially due to high rental rates.

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