Insight: The Housing Market September 2024

The latest Halifax House Price Index reveals some meaningful insights for the housing market. As we head into September, the UK housing market continues to demonstrate resilience, building on recent positive trends. Despite ongoing economic challenges, house prices have shown modest growth, reflecting a stable environment with potential for continued recovery. Below is an overview of the latest data, highlighting key statistics at both national and Kent levels.

The Headline Stats and Facts

• Average selling price: £292,505 (an increase of +0.3% from last month)
• Property price increases: Annual rate of growth is +4.3% (up from 2.3% last month)
• Interest rates: 5% (down from 5.25% last month)
• Inflation: 2.24% (just above the Bank of England’s target of 2%)
• RICS net balance score: The RICS data points to a slightly more optimistic picture. New buyer enquiries are at a net balance of +2% (up from -6% last month), and agreed sales have improved to -2% (up from -6% last month). New instructions are back in positive territory at +2% (up from -9% last month).

Kent-Specific Stats

• Average time on market: Properties in Kent currently spend an average of 158 days on the market (slightly down from last year).
• Number of properties for sale: The number of properties for sale is up 11% compared to the same time last year.
• Average selling price in Kent: £425,800 (showing a slight decrease from last month).

What Does This Mean?

The UK housing market has maintained a consistent upward trajectory, with the average house price rising by +0.3% in August 2024. This growth comes after a +0.9% increase in July, indicating a modest but steady recovery. The annual growth rate of +4.3% is the strongest since November 2022, showcasing a positive outlook for homeowners and investors alike.

Amanda Bryden, Head of Mortgages at Halifax, stated: “Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years. Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.

The recent uptick in mortgage approvals and continued low-interest rates are encouraging signs for those looking to remortgage, purchase a first home, or move along the housing ladder. However, affordability remains a critical issue for many potential buyers, particularly in the face of still-elevated mortgage costs.”

Looking Ahead

Overall, the picture remains cautiously optimistic for the remainder of the year. With interest rates expected to potentially decrease further, mortgage affordability may improve, potentially driving more activity in the market. As such, we might see house prices continue their modest upward trend in the coming months.

What About Kent?

The number of properties available on the market and the average time on the market both suggest healthy activity and interest in the county. However, the average property price has dropped marginally, bucking the national trend. This dip is small, and within the context of the post-pandemic boom in in the Kent market, makes sense and isn’t concerning.

Overall, the market in Kent remains balanced, offering opportunities for both buyers and sellers. However, as always, it's crucial for buyers and sellers to consider their specific needs and how these align with broader market trends.

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