Mortgage rates drop to lowest rates seen in 15 months as house prices rise and more homes are sold. Get the latest in our House Price Index.

Key Figures

The average house price in the UK is £267,100 as of August 2024 (published in October 2024).

Property prices are now at 0.7% inflation compared to a year ago. However, the average UK house price is set to rise by 2.5% by the end of the year.

Key takeaways

• Lowest mortgage rates for 15 months boost sales market activity

• Buyer demand and sales agreed up 25% since 2023

• Buyers remain price-sensitive, keeping price rises in check

• Average UK house price rises almost 1% in a year

• In affordable areas, house prices rise 2.5% 

• Almost a third of homes for sale are ‘chain-free’ as investors and second home owners sell in the face of recent and possible tax changes

• Some coastal and rural areas see supply of homes for sale up 40% on last year

• The outlook is for modest price growth and steady growth in sale

Double-digit growth in sales market activity

Home buyers are benefitting from the lowest average mortgage rates for 15 months, which is supporting double-digit growth in all key measures of sales market activity. Annual house price inflation is positive, but remains below 1%. 

Nationally, home buyer demand is up 26% on this time last year, as more homes are listed for sale and sellers look for somewhere new to buy.

The average mortgage rate for a new 5-year 75% LTV loan is 4.3%, compared to 5.5% a year ago, the lowest since May 2023. 

And intense competition among lenders is keeping rates attractive for buyers, especially for those with larger amounts of equity.

The number of sales agreed is now 25% higher than a year ago as households that have held off making moving decisions over the last 2 years return to the market. 

Sales are up by over 10% across the UK, and more than 30% across the East Midlands and North East.  

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