
The October 2024 Halifax House Price Index has confirmed what many have observed: UK house prices have reached a new record high, with the average property now priced at £293,999, surpassing the previous peak set in June 2022. This resurgence, driven by steady monthly growth since mid-2024, raises important considerations for potential buyers and sellers alike.
The Current Landscape
Despite economic challenges, house prices have remained relatively stable over the past two and a half years. The recent +0.2% monthly increase continues a trend of modest growth, now at +3.9% higher than last year. This follows the notable 21% price surge between 2020 and 2022, fuelled by the pandemic-era ‘race for space.’
Regional Highlights
- North West: Prices have risen by +5.9% year-on-year, with the average property now at £235,587. This growth indicates a competitive market, appealing for sellers and a consideration for buyers moving to the area.
- Wales: Property values are up +5.6% compared to last year, with an average price of £225,543, reflecting steady demand.
- London: The most expensive area, with average prices at £543,308 and a more modest annual growth of +3.5%.
What This Means for Different Market Segments
First-Time Buyers
The record-high average house price of £293,999 presents a challenge for first-time buyers. The anticipated reduction of the SDLT relief threshold from £425,000 to £300,000 by March 2025 could increase upfront costs for those purchasing properties above this new limit. Acting before the threshold change may drive short-term demand.
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Upsizers and Families
For families looking to upsize, record-high property prices may yield significant equity gains from selling their current homes. However, higher purchase costs for larger properties must be considered. Current market dynamics, with consistent price growth, suggest that moving now could be more advantageous than waiting, especially before the SDLT relief threshold decreases.
Downsizers and Retirees
Downsizers stand to benefit from selling at peak market prices, unlocking equity for future plans. However, the anticipated SDLT relief change could mean higher costs if purchasing a smaller home priced above £300,000 after March 2025.
Property Investors and Landlords
Investors face increased acquisition costs due to the 5% SDLT surcharge on additional properties, combined with record-high house prices. While this may affect short-term profitability, the potential for robust equity growth and long-term rental income remains attractive. The upcoming SDLT relief reduction could further compress margins, making strategic investment planning essential.
Second Home Buyers
The higher 5% SDLT surcharge for second homes, coupled with rising prices, increases the cost of entering or expanding in this market. Buyers should carefully plan their budget or timing to optimise their purchases.
Sellers
Sellers are in an ideal position, with property prices at an all-time high. Listing now could capture the interest of motivated buyers, particularly as they aim to complete transactions before the SDLT relief changes. However, the higher SDLT surcharge for additional properties might temper demand in some segments.
Setfords Tip for Sellers: Take advantage of the current market strength and partner with Setfords for expert conveyancing to ensure a seamless selling process.
Looking Forward
Forecasts predict continued growth in house prices, although at a slower pace, as the market adapts to economic conditions and policy changes, such as SDLT adjustments. Whether you’re buying, selling, or investing, being informed and proactive can make all the difference.
Setfords: Your Partner for All Property Transactions
Navigating record-high house prices and upcoming policy changes can be complex, but Setfords is here to help. As one of the UK’s largest conveyancing firms, we are committed to making your move simple and efficient. With an average completion time of just 111 days—the fastest among the top UK conveyancing firms—you can count on us for a quick, seamless transaction.
Our team’s expertise is unmatched, with an average lawyer PQE (Post-Qualified Experience) of 18 years. This depth of experience ensures that your property transaction is handled with the highest level of professionalism and care. Setfords is also the third-largest conveyancing firm nationally, based on the number of completions, demonstrating our capability and trust within the industry.
With over 10,000 reviews and a Trustpilot score of 4.9*, Setfords holds the highest rating of any law firm in the UK, highlighting our dedication to delivering outstanding service every time.
Whether you’re buying, selling, or investing, our dedicated team offers expert conveyancing services tailored to your needs, ensuring your transaction is as smooth and stress-free as possible. Contact us today for guidance on making the most of the current market and experience why thousands across the UK trust us.