May 2024: UK House Price Index

The UK property market in April 2024 has exhibited a diverse range of trends across different regions, reflecting the dynamic nature of real estate investment opportunities for homebuyers and homeowners.

From the sharp increase in average sale prices in Camden to the dramatic decline in Kensington and Chelsea, each area presents unique challenges and opportunities for investors and potential homeowners.

Meanwhile, regions like Oldham and Havering showcase market stability, offering consistent growth and dependable investment environments. The overall UK house price index also indicates a trend towards stability, with a narrowing gap between asking and sale prices, suggesting improved market efficiency and buyer confidence which will be very much welcomed by current homeowners.

Our comprehensive analysis delves into these regional variations, providing detailed insights and highlighting key factors driving market movements. Whether seeking high returns in volatile markets or steady growth in stable regions, understanding these trends is crucial for making informed investment decisions in the ever-evolving UK property market.

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Overall House Price Index

Month	Avg Asking Price	Avg Sale Price	Difference
	£375,131		-9.5%
	£372,324		-11.7%

In April 2024, the UK housing market showed a slight increase in both average asking and sale prices, reflecting a much welcomed stabilising trend. The average asking price rose to £375,131, up from £372,324 in March 2024. Similarly, the average sale price increased to £339,387 from £328,628 the previous month. This represents a narrowing of the gap between asking and sale prices, with the difference decreasing to -9.5% from -11.7%.

The reduction in the difference between asking and sale prices indicates a more competitive and realistic market, where home sellers are aligning their expectations closer to what home buyers are willing to pay. This trend suggests increased market efficiency and potentially improved buyer confidence, as properties are selling much closer to their asking prices.

Several factors could be contributing to this shift. The economic environment, interest rates, and consumer confidence all play crucial roles. A stable or improving economic outlook can bolster buyer confidence, encouraging more transactions at higher prices. Additionally, the gradual increase in both asking and sale prices suggests a healthy demand for properties across the UK.

For property investors or potential homeowners, this trend is encouraging. The narrowing gap between asking and sale prices indicates that the market is becoming more predictable, which is beneficial for making informed investment decisions. Investors and homebuyers should monitor regional variations, as different areas may exhibit unique trends influenced by local economic conditions, infrastructure developments, and housing supply.

The overall increase in average prices highlights a resilient market. However, with all that being said, the -9.5% difference between asking and sale prices still suggests room for negotiation and careful market analysis. Homebuyers should consider properties where the gap is narrower, indicating stronger demand and less likelihood of overpricing.

Detached home sales stayed very much consistent again this month with the market share set firmly at 26.7%.

Whilst the volume of sales stayed consistent for this month’s house price index, the average sale price took a healthy jump of +4.5%.

This is the second month in a row that detached homes have seen a welcomed increase on average sales prices indicating a potential preference for homebuyers across the UK.

Semi-detached homes had a welcomed bounce back after last month’s disappointing numbers. Semi-detached properties in the UK managed to increase their market share this month by +0.5% gaining traction up to 27.4% from 26.9% in March.

Along with this market share reclaim, their average price also saw a rise of 1.9% from £301,080 up to £306,879.

Terraced properties in the UK saw the largest rise of all property types for April 2024. Whilst they took a small drop in market share from 26.8% down to 26.3%, they did increase their average value.

The average price paid for a terraced property rose a very healthy 4.8% up to £280,595 which will be welcomed news for any homeowners looking to put their terraced property on the market.

Apartments throughout the UK once again showed their stability in remarkable fashion this month. With the market share almost identically in line with March 2024 only showing a 0.1% increase, their appeal and demand has remained consistent.

Along with their stable market share, their average price also kept its pace with a negligible rise of a little over £1000 to £263,598.

Month	Avg Sale Price	Change
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Biggest House Price Index Increase

Month	Avg Sale Price	Change
		–

The Camden local property market experienced a remarkable surge in April 2024, with the average sale price soaring to £795,459. This represents a staggering 68.52% increase from the previous month house price index, where the average sale price stood at £472,038. This dramatic rise can be attributed to several factors, including heightened demand, limited supply, and possibly significant sales of high-value properties which skewed the average price upwards.

Such a substantial monthly increase in average sale price is unusual and suggests a shift in the market dynamics. Buyers and investors need to consider whether this surge is a temporary anomaly or indicative of a longer-term trend. Examining underlying factors such as changes in local amenities, upcoming infrastructure projects, and broader economic conditions can provide insights into the sustainability of this price growth.

For investors, this rapid appreciation might indicate a lucrative short-term opportunity, but it also necessitates a cautious approach. The volatility in prices underscores the importance of thorough market analysis and strategic planning. Potential buyers should evaluate if similar trends are observable in comparable areas or if Camden is an outlier.

Given the significant rise in property values within a single month, Camden may continue to attract attention from both domestic and international investors seeking high returns. However, the market’s response in the coming months will be crucial in determining whether this spike is a precursor to sustained growth or a peak before a correction.

With detached properties being in significant short supply throughout London, it comes as little surprise that no properties of this type were sold in Camden throughout April 2024.

Semi-detached properties in the area, much like detached homes, also saw no action in the UK property price index for May 2024.

Terraced homes were the surprise for the month with both a significant drop in market share and a profitable increase in average sales.

Whilst the drop of -9.1% down to 6.3% may cause some concern to homeowners in Camden, their short supply will ease some of those worries.

If any further reassurances were needed, then they will come in the form of the average price for those properties received. May’s house price index for Camden saw a whopping 88.8% increase in average sale prices for terraced homes rising significantly from 781,250 in March 2024 all the way up to £1,475,000 in April 2024.

Apartments in the area make up the bulk of all property types so it is little surprise that they made up 93.8% of all properties sold throughout Camden.

Their value also took a large jump which may point to Camden’s continuous rise of popularity. Jumping from £415,818 back in March to £750,157 for a way above average 80% rise, this is certainly great news for investors and homeowners throughout the borough.

Lowest House Price Index Increase

Month	Avg Sale Price	Value Change
		–

The property market in Oldham displayed minimal movement in April 2024, with the average sale price edging slightly upwards to £204,364. This represents a marginal increase of 0.12% from March 2024, where the average sale price was £204,111. Such stability in property prices indicates a balanced market with neither strong upward nor downward pressures.

This modest change suggests that Oldham is currently experiencing a period of equilibrium. For buyers, this stability can be reassuring, offering a predictable investment environment. For sellers, the slight increase, although not substantial, points to a steady demand for properties in the area.

Several factors might contribute to this steady state, including consistent local employment rates, stable economic conditions, and a balance between property supply and demand. Unlike areas experiencing rapid price fluctuations, Oldham’s stable market could be attractive to risk-averse investors seeking long-term growth rather than quick returns.

For property investors, the slight increase in property prices should prompt a detailed examination of local trends. Factors such as population growth, upcoming developments, and changes in local infrastructure could influence future property values. Additionally, analysing rental yields in comparison to purchase prices might reveal attractive opportunities for buy-to-let investments.

Overall, Oldham’s property market in April 2024 suggests a calm and steady environment. While the growth rate is minimal, the stability offers a solid foundation for long-term investment strategies, appealing to those who value consistency over volatility.

In Oldham, detached home sales increased from 13.6% in March to 18.2% in April, while the average price decreased from £351,000 to £342,500. This trend indicates a higher volume of detached homes sold in April despite a lower average price, suggesting potential market adjustments or shifts in buyer preferences.

Similar trends and fluctuations are observed across Bury, Bolton, and Rochdale, highlighting variations in property sales dynamics and pricing across these regions.

The statistics for Oldham highlight a significant shift in the semi-detached property market between March and April 2024.

In March, semi-detached sales constituted 27.3% of total property sales with an average price of £209,333. By April, the proportion of semi-detached sales surged to 40.9%, and the average price increased slightly to £212,333.

This upward trend in both sales percentage and average price indicates a growing demand for semi-detached homes in Oldham, reflecting changes in buyer preferences or market conditions.

There was also a notable shift in the terrace property market between March and April 2024. In March, terrace sales accounted for 54.5% of total property sales with an average price of £170,663.

By April, the proportion of terrace sales decreased to 36.4%, with the average price dropping significantly to £136,625.

This decline in both sales percentage and average price suggests a reduced demand for terrace homes in Oldham, possibly due to market saturation or changing buyer preferences towards other property types.

In Oldham, the apartment market remained stable between March and April 2024, with apartment sales constituting 4.5% of total property sales in both months. However, the average price of apartments saw a notable decrease from £133,500 in March to £122,000 in April.

This price drop suggests a potential decrease in demand or a shift in the types of apartments being sold, possibly favouring lower-priced units. Despite the consistent sales percentage, the reduction in average price reflects changing market dynamics within the apartment sector.

Biggest House Price Index Decrease

Month	Avg Sale Price	Change
		–

In April 2024, the Kensington and Chelsea property market witnessed a dramatic decrease, with the average sale price plummeting to £723,746. This represents a significant drop of 61.89% from March 2024, when the average sale price was £1,899,262. Such a steep decline indicates a major shift in the market, likely driven by a combination of economic factors, changes in buyer behaviour, or substantial changes in the types of properties sold.

Several possible reasons could explain this drastic reduction. It could be due to a significant number of high-value properties being sold in March, followed by a shift to more modestly priced properties in April. Alternatively, external economic pressures such as changes in interest rates, policy shifts, or broader economic downturns may have influenced buyer and seller activity.

For investors, this sharp decline requires careful consideration and analysis. It presents a potential buying opportunity if the market correction is temporary, but it also raises concerns about market volatility and the potential for further declines. Investors should scrutinize local market conditions, including supply and demand dynamics, recent sales data, and broader economic indicators, to gauge the underlying health of the market.

This downturn might also reflect a temporary market correction following an overheated period, where prices had escalated to unsustainable levels. For those looking to enter the market, this could be a strategic moment to acquire properties at reduced prices, provided there is confidence in long-term recovery.

Kensington and Chelsea, traditionally a prime area for high-value properties, may experience continued fluctuations as the market seeks equilibrium. Monitoring upcoming sales, government policies, and economic conditions will be crucial in understanding whether this dramatic drop is an anomaly or the start of a new trend.

With detached homes being almost non-existent in Kensington & Chelsea, there were again no figures to report this month for any sales.

Semi-detached properties in the area much like detached are in extremely low supply and yet again there were no sales of this property type to report.

Terraced properties in the area took a small drop with no sales to be reported in the property price index for May 2024.

In Kensington and Chelsea, the property market displayed a significant shift from March to April 2024. In March, apartment sales dominated, comprising 94.1% of total property transactions, with an average price of £1,628,903. This high percentage and substantial average price indicate a robust demand for high-end apartments in this affluent area. However, in April, there was a dramatic change, with 100% of sales being detached properties. The average price for these detached properties was £723,746, significantly lower than the average price of apartments in March.

This shift from apartments to detached homes suggests a possible change in buyer preferences or market conditions. The substantial price difference between apartments and detached homes could indicate varying levels of demand and supply within these property types. It may also reflect broader economic factors or specific local market dynamics influencing buyer behaviour in Kensington and Chelsea. The data highlights the fluid nature of real estate markets and the importance of closely monitoring trends to understand underlying market forces.

Lowest House Price Index Decrease

Month	Avg Sale Price	Change
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The property market in Havering showed a slight decline in April 2024, with the average sale price decreasing to £464,091. This marks a minimal drop of 0.24% from March 2024, where the average sale price was £465,214. Such a minor change indicates a relatively stable market with no significant upward or downward pressures.

The small decline in Havering’s property prices suggests a balanced market, maintaining consistency in its pricing. For buyers, this slight decrease could be seen as a minor advantage, offering a slightly better entry point into the market. For sellers, it reflects stable demand, suggesting that the market is neither overinflated nor depressed.

Several factors could contribute to this stability. Local economic conditions, employment rates, and housing supply and demand likely remain steady, contributing to the minimal fluctuation in prices. The minor price change could also indicate that Havering is not experiencing the same volatility seen in other regions, providing a more predictable environment for both buyers and sellers.

For investors, Havering’s stable market offers a reliable investment opportunity. The slight decrease in prices is negligible in the broader context, suggesting that the area maintains its value well. This stability can be particularly appealing for long-term investors looking for consistent returns without significant risk.

Analysing local trends, such as upcoming infrastructure projects, changes in demographics, and economic forecasts, can provide further insights into the market’s direction. Additionally, comparing rental yields to property prices may reveal opportunities for profitable buy-to-let investments.

Overall, Havering’s property market in April 2024 exemplifies stability with a slight downward adjustment. This steadiness is beneficial for those seeking a dependable investment environment, highlighting Havering as a potentially attractive option for property investors prioritizing long-term security over short-term gains.

In Havering, the property market for detached homes experienced a significant shift between March and April 2024. In March, detached homes represented 14.3% of the market, with an average price of £555,000. This suggests a steady demand for detached properties at a mid to high price range, reflecting the area’s typical market conditions.

However, in April, the percentage of detached home sales dropped dramatically to just 4.3% of the market, while the average price surged to £1,900,000. This substantial increase in average price indicates that the few detached homes sold in April were likely high-end, luxury properties, which significantly skewed the average. This sharp rise in price suggests a focus on premium real estate transactions within this period, contrasting with the broader market activity observed in March.

The stark contrast between the two months in both sales volume and average price highlights a unique fluctuation in Havering’s detached home market. This could be due to several factors, such as a limited number of high-end properties being listed and sold, or changes in buyer preferences and market dynamics. The data underscores the volatility and potential for significant price variations within short periods, emphasizing the need for close monitoring and analysis of market trends to understand the underlying causes of these shifts.

Havering witnessed a notable shift in semi-detached property sales from March to April 2024. In March, semi-detached sales accounted for 35.7% of the market, with an average price of £557,000. However, by April, this percentage increased to 40.9%, despite a decrease in the average price to £491,000.

This suggests a growing demand for semi-detached properties in Havering, possibly driven by various factors such as affordability, amenities, or changing buyer preferences. Investors keen on Havering should take note of this trend, as it indicates potential opportunities for capitalizing on the rising demand for semi-detached homes in the area.

In March 2024, Havering’s property market reflected a terraced sales rate of 28.6%, with an average price of £525,000. However, the following month saw a rise in terraced property sales to 31.8%, coinciding with a notable decrease in the average price to £401,571. This shift suggests a fluctuation in market dynamics, possibly influenced by factors such as economic conditions or buyer preferences.

Investors should pay attention to such changes, as they indicate evolving trends in property demand and pricing within Havering. The increase in terraced sales coupled with the decrease in average price may present opportunities for investors seeking entry into the Havering property market or diversification of their existing portfolio.

In March 2024, Havering’s property market depicted apartment sales comprising 21.4% of transactions, with an average price of £172,667. By April 2024, apartment sales slightly increased to 22.7%, accompanied by a notable rise in the average price to £216,000.

This data suggests a shifting landscape in Havering’s apartment segment, potentially indicating increased demand or market sentiment favouring higher-priced properties. For property investors, monitoring such trends is crucial as it provides insights into evolving market dynamics and opportunities for investment.

The uptick in apartment sales coupled with the significant rise in average price suggests a market segment worth exploring for investors seeking potential growth or diversification within Havering’s property market.

Conclusion

April 2024 has showcased the diverse and dynamic nature of the UK property market. In Camden, a remarkable surge in average sale prices signifies a potential hotspot for high returns, albeit with caution due to volatility.

Kensington and Chelsea’s dramatic decline highlights the importance of understanding market shifts and economic factors influencing property values. In contrast, the stability observed in Oldham and Havering provides a reassuring environment for long-term investors seeking steady growth. The overall UK house price index, with its narrowing gap between asking and sale prices, points to an increasingly efficient and confident market. For investors, this means opportunities abound across different market conditions, from volatile high-return areas to stable, dependable regions.

By analysing these trends and underlying factors, investors can strategically navigate the UK property landscape, making informed decisions that align with their investment goals and risk tolerance. Understanding these regional nuances is key to capitalizing on the evolving opportunities in the UK property market.