The latest Property Market Index Review from London agency Benham and Reeves highlights a positive close to 2024 for the UK housing market, with house prices rising steadily and sellers showing increased flexibility in pricing.
Steady growth in property values
The Benham and Reeves index, which aggregates data from Halifax, Nationwide, Rightmove, and the UK House Price Index, reveals that the average UK house price in Q3 2024 was £311,154.
- Quarterly increase: 0.9%, marking the third consecutive quarter of growth this year.
- Annual increase: 2.2% compared to Q3 2023.
In London, the average house price stood at £574,254, showing no change from Q2 but rising 1.1% annually.
Narrowing the buyer-seller price gap
Mortgage Approval vs Asking Price
- Nationally, the gap between buyers’ mortgage approval price (£278,890) and sellers’ asking price (£370,672) has shrunk to 32.9%, down from 35.5% in Q2.
- In London, this gap narrowed to 30.4% as sellers adjusted to market realities, down from 33.3% the previous quarter.
Asking Price vs Sold Price
- Across the UK, the average sold price (£291,411) was 21.4% below the asking price, a narrowing from 24.1% in Q2.
- In London, this gap closed to 22.9%, the slimmest margin since Q1 2023, down from 25.7% in Q2.
A pragmatic market approach drives stability
Marc von Grundherr, director at Benham and Reeves, commented:
“2024 has been a far more positive year for the property market, despite higher interest rates. Sellers have become more pragmatic, bridging the gap between what buyers can afford and their asking price expectations. This compromise has led to more transactions and a healthier rate of price growth.”
With sellers meeting buyers halfway, the market has moved beyond the stalemates seen in prior years. The result is a steady, more sustainable housing market recovery, positioning the sector for further stability in 2025.