Against expectations, UK building societies are reporting the fastest growth in house prices since December 2022.
If you are looking at estate planning in Cheshire, property market data for the county is broadly in line with the average national house price of £266,334, which went up by 0.3% from June to July 2024.
Over the whole year, house prices are up by 2.1%, the most significant annual rise over the last 18 months. The same data reveals that approximately £10,000 has been added to the value of an average property in 2024, and this figure is expected to edge higher.
Analysts have said that the market is still adjusting to higher mortgage rates, and that has largely remained steady, with the number of approved mortgages totalling around 60,000 per month. While this figure is around 10% below the pre-pandemic level, it offers evidence of a market robustness against a higher interest rate backdrop.
Many economists had expected prices to rise by 1.8% year on year and 0.1% over the month of July. The figures will generate optimism in the industry that lower borrowing costs are feeding a recovery in demand for new homes. There is a concurrent expectation that with election uncertainty out of the way, the autumn will be a busy period for transactions.
Meanwhile, year-on-year commercial property investment in the UK rebounded in the second quarter, with a 26% annual jump in sales in Britain – although analysts warned against celebrating prematurely while the office market sector remains weak.
