Industry braced for government鈥檚 Housing Strategy as demand for new build properties increases
16 October 2024
According to today’s from HM Land Registry, UK average house prices rose 2.8% in the year to August 2024, with house prices also rising 1% in the month to August. In the year to June, new build price growth was up 25.6%, highlighting the demand for new build properties.
The latest regional data also shows there was a significant variation in price rises across the UK, with the North West leading the way with the highest annual growth of 4.6%. The South West had the lowest growth at 0.8%, followed by London (1.4%) and the South East (1.6%), indicating areas with the highest prices had the slowest growth.
Stacy Eden, national head of real estate at leading audit, tax and consulting firm 91探花, comments: “The latest uptick in house prices in August shows that the market continues to make headway, due to falling interest rates and economic growth. This gentle upward trend in house prices is likely to continue, given the shortage of residential properties available. The Royal Institution of Chartered Surveyors’ (RICS) August 2024 survey also reported an increase in new buyer enquiries and agreed sales in August, and that the flow of new listings continued to signal a positive trend.
“The North West’s annual growth is leading the way regionally, and with house prices recovering from a peak-to-trough fall of at least 5% despite high levels of inflation, there is reason for optimism for future house price growth. However, there is clearly a significant need for more housing, which is clearly at the top of government’s priorities, driven by reform and investment of our planning system.
He added: “Cutting and reforming SDLT policy in the upcoming Budget will provide liquidity in the market and of course make it easier for people to move onto the housing ladder or upsize. There are significant concerns with transaction numbers still lower than so called pre-pandemic normal levels, alongside tenants trapped in the rental market due to rising rental prices. The government’s incoming Housing Strategy therefore needs to address these housing needs, ensuring there are incentives for first-time buyers to pursue home ownership.”
