Insight: The Housing Market August 2024

As we navigate through August 2024, the UK housing market continues to show notable resilience. Despite various economic pressures, house prices have seen an upward trend, indicating a stable market environment with some recovery, against a subdued recent history.

Below is a detailed overview of the most recent data, highlighting key statistics at both national and Kent levels.

The headline stats and facts

• Average selling price: £291,268 (an increase of +0.8% from last month)
• Property price increases: Annual rate of growth is +2.3% (up from 1.6% last month)
• Interest rates: 5.0% (down from 5.25% since August 2023)
• Inflation: 1.9% (slightly below the Bank of England’s target of 2%)
• RICS net balance score: RICS data reflects the relatively subdued picture of late, but doesn’t take into account the interest rate drop as the data is from June. New buyer enquiries are at a net balance of -7% (was -8% last month) and agreed sales also -7% (up from -13% last month). New instruction data has been bouncing back, but this month it fell to -9%, ending the six month track of positive readings.

Kent-Specific Stats

• Average time on market: Properties in Kent currently spend an average of 160 days on the market (up slightly from last year)
• Number of properties for sale: The number of properties for sale is up 12% compared to the same time last year
• Average selling price in Kent: £430,000 (showing stability with a minor change)

What does this mean?

The UK housing market has demonstrated consistent growth, with the average house price increasing by +0.8% in July 2024. This rise follows three months of relatively stable prices, indicating a steady recovery. The annual growth rate of +2.3% is the highest since January 2024, reflecting a positive trend for homeowners and investors alike.

Amanda Bryden, Head of Mortgages at Halifax, stated: “In July, UK house prices increased by +0.8% on a monthly basis, following three relatively flat months. The average house price in the UK is £291,268, up over £2,200 compared to the previous month. The annual growth rose to +2.3%, the highest rate since the start of this year. Last week’s Bank of England’s Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home, or move along the housing ladder. However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.”

Fundamentally, it’s a cautiously optimistic picture going forwards. With interest rates having dropped for the first time in a while, mortgage rates will drop, becoming more affordable. As such, it’s likely that house prices nudge upwards for the rest of the year.

What about Kent?

The Kent housing market has mirrored the national trend to some extent, but as always, there is some regional variation. Kent house prices have increased after a few months of marginal declines, showing stability and resilience in the local market. The number of properties on the market suggests a healthy level of activity and interest within the region.

The Kent market is largely balanced and stable, which indicates a market environment conducive to both buyers and sellers. It’s important to consider your specific needs as a buyer or seller and consider how these interact with local and national trends.

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