Decoding UK Real Estate: Insights into Sold House Price Trends
Jul 04, 2024
“Comprehensive guide to understanding sold house prices trends in the UK”
Getting insight into the sold house price trends is essential to understand the mood or status of the market. House price-related news and updates are always attractive to potential buyers and sellers. In the UK, the housing market fluctuates as it goes up in some areas whereas it drops in other regions. Through this blog, we will guide potential buyers or sellers regarding the price trends for sold houses in the UK. To gain a comprehensive understanding of the housing market, continue reading.
Understanding Housing Market Trends - Factors to Consider
Several factors need to be considered when it comes to understanding the housing market trends or sold house prices in the UK. Rather, some indicators help in comprehending the price market for sold houses in the UK. Here are a few important factors to consider:
- Current House Prices
- Volume of Properties Sold
- Economic Status
- Mortgage Rates
- Market or Price Prediction
Current House Prices: A Deciding Factor to Set Sold House Prices Trend
According to the UK's Land Registry House Price Index, the housing market shows a 0.2% downfall in 2024. Besides, the average house price in the UK is £280,660 which is slightly low in comparison to the prices of 2022 i.e. £292,000 on average. Refer to the table below, to check out the change in house prices through different regions of the UK.
| Country/region | Property price | Monthly change | Annual change |
|---|---|---|---|
| England | £298,000 | +0.6% | -1.1% |
| Scotland | £188,000 | 0.6% | +5.6% |
| Wales | £211,000 | +0.4% | -1.2% |
| Northern Ireland | £178,000 | -0.9% | +1.4% |
| East Midlands | £242,000 | +1.4% | -0.4% |
| East of England | £339,000 | +1.7% | -1.6% |
| London | £503,000 | -0.7% | -4.8% |
| North East | £160,000 | +3.2% | +2.9% |
| North West | £214,000 | -0.2% | +1.4% |
| South East | £373,000 | +1.1% | -2.1% |
| South West | >£317,000 | +0.5% | -0.4% |
| West Midlands | £242,000 | -1.2% | -2.9% |
| Yorkshire & Humber | £205,000 | +0.9% | +0.2% |
The Volume of Houses Sold
The number of houses sold in a region or city determines the market status. Generally, if more houses are sold, the market trends are healthy and indicate positivity. Similarly, if the volume of houses sold is less, it indicates a drop or slower market trend. In addition, the upward trend is ideal for potential sellers to sell housing properties at desired rates. Whereas, the slower market status is beneficial for buyers as they have more space for negotiation on prices. Let's explore the UK regions with the highest and the lowest sold house prices.
Highest House Price Regions
- London with an average house price of £528,798 is the region with highest sold house price
- London is followed by South East England where the average house price is £376,804.
- The third region with the highest house price is Eastern England where the prices stand at £325,634.
Lowest House Price Regions
- South East is one the regions where house prices are low. The region has an average house price of £376,804.
- Next, on the list is South West, with an average house price of £293,067.
- Third is Eastern England where house prices show a decline. The average house price is around £325,634.
Economic Factors and Buyers’ Market
The market indicators and data from the Land Registry's UK House Price Index are in favour of buyers. The lower market rates are favourable for potential buyers. Furthermore, the fluctuating property market is also in favour of buyers. Moreover, considering economic factors are also essential to determine the trends for sold house prices. Economic factors should be analysed with the integration of interest rates, government policy, and the trade market. Additionally, the current country situation is also essential for predicting market trends. For example, the year 2024 is the election year in the UK, thus the market may fluctuate consistently.
Mortgage Rates and the Sold House Prices
In the UK, mortgage rates have witnessed an increased trend in the last couple of years that led to a drop in the average house prices. But the latest news coming from the market is positive and the mortgage interest rate may move towards stabilization. Stable mortgage rates are also an important factor in determining the sold house prices. Apart from this, the impact of interest on fixed-rate mortgages is another factor in predicting house prices.
Predictions and Forecast for Sold House Prices Trends
Whereas, predictions and forecasts about house prices in the UK are subjective. Real estate experts believe house prices continue to show a downward trend in 2024. This prediction is based on two factors i.e. the rising mortgage costs and the cost-of-living crisis. However, the stable mortgage interest rates and effective housing policies from the government may bring positive changes in the housing market.
In conclusion, the sold house price trends are subject to multiple factors. Potential buyers and sellers may consider some factors that are believed to play a role in determining house prices in the UK. Current house prices, economic status, mortgage rates, and volume of properties sold are some of the factors that need consideration.
