The latest Property Market Index Review from London agency Benham and Reeves reveals a third consecutive quarter of house price growth, signalling a positive end to the year for the UK property market.
House price trends – steady recovery
- UK average house price: £311,154 in Q3 2024, marking a 0.9% quarterly increase and a 2.2% annual rise.
- London: Average house prices reached £574,254, showing 1.1% annual growth, despite remaining flat versus Q2.
This stability suggests improving confidence in a challenging market.
Sellers and buyers closing the gap
- Mortgage Approval Price vs Asking Price:
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- UK buyers’ average mortgage-approved price: £278,890
- Sellers’ average asking price: £370,672
- Gap: 32.9%, narrowing from 35.5% in Q2.
- In London, the gap reduced to 30.4%, indicating greater flexibility from sellers.
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- Asking Price vs Sold Price:
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- UK average sold price: £291,411 (21.4% below asking price), improving from a 24.1% gap in Q2.
- In London, the gap reduced to 22.9%, the smallest since Q1 2023.
- These narrowing gaps show pragmatic adjustments by sellers, helping to increase sales activity.
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Expert commentary
Marc von Grundherr, Director at Benham and Reeves, notes:
“2024 has been a far more positive year for the property market, with steady growth across all three quarters despite higher interest rates. Sellers are showing a more pragmatic approach by lowering asking price expectations, bridging the affordability gap with buyers. This has led to an uptick in transactions and a healthier pace of growth.”
Outlook for 2025
With sellers meeting buyers halfway, and house prices maintaining steady momentum, the UK property market is set to enter 2025 on firmer ground, bolstered by pragmatism and growing buyer confidence.