Average UK house prices rose for a second month in a row during April, Land Registry data shows.
The latest Land Registry House Price Index puts the provisional estimate for annual growth at 1.1% in April, up from 0.9% in March.
It is the second consecutive month of growth.
Average prices were also up on a monthly basis by 0.3%. This puts the average UK house price at £281,373.
Of English regions, annual house price inflation was highest in the North West, where prices increased by 3.8% in the 12 months to April 2024.
London was the English region with the lowest annual inflation, where prices decreased by 3.9% in the 12 months to April 2024.
Commenting on the report, Tom Bill, head of UK residential research at Knight Frank, said: “House price growth this Spring has effectively been squashed by rising mortgages rates and the fact supply is growing faster than demand. Higher-than-expected services inflation today will only increase downwards pressure on prices, with the first rate cut not expected for another four months. That said, demand per listing has rarely been lower in recent years, which means buyers who do their homework may find themselves in an advantageous position.”
The time lag with Land Registry records means many of these deals will have been completed earlier this year or at the end of 2023 and don’t necessarily reflect current market sentiment.
Nick Leeming, chairman of Jackson-Stops, said: “Despite gloomy weather so far this year, vendors are still driven to get their homes on the market. At Jackson-Stops, we've witnessed this momentum firsthand with an 18% uptick in new property listings hitting the market, as vendors look to take advantage of robust buyer demand. The expanding inventory provides much-needed supply for buyers who have been hampered by limited choices over the past few years and signals a step-change in the market – vendors now need to be competitive with their listing price to standout.”
He said regional hotspots for Jackson-Stops such as Chipping Campden, Midhurst and Sevenoaks saw a significant uptick in new buyer enquiries, demonstrating the demand for homes in popular commuter towns and rural hubs across England.
Leeming added: “It's worth noting that the General Election had not yet been announced during this period, so next month's figures will reflect the impact of political change. However, early indicators from the Jackson-Stops network suggest that the election has had little impact on buyer and vendor sentiment. Life's pivotal moments continue to drive housing transactions regardless of the political climate. The ‘must-move’ market persists, while activity at the higher end has gained momentum.”
The Conservatives appear to have abandoned plans to reverse Stamp Duty thresholds for first-time buyers if the party returns to power after the General Election.
The first-time buyer Stamp Duty exemption was increased from £300,000 to £425,000 at the 2022 mini Budget but was set to be reversed at the end of March 2025.
But Prime Minister Rishi Sunak has now said the threshold will remain, according to reports.
This has put the Tories at odds with Labour after Shawdow Chancellor Rachel Reeves refused to match the policy.
Commenting on the reports, Richard Donnell, executive director at Zoopla, said: "Our analysis of what first-time buyers are looking to buy on Zoopla shows eight in 10 would pay no Stamp Duty if the current measures were made permanent.
Zoopla’s research found that 7% of first-time buyers would still pay full Stamp Duty, most of whom are looking in London and 15% would pay partial Stamp Duty.
A return to the old rules and price thresholds would have seen 30% paying the tax.
Donnell added: “The primary challenge for first-time buyers remains the need to afford higher mortgage rates and pass mortgage affordability tests.
“For many, this means injecting more equity into home purchases to reduce the level of income needed to buy. This impacts buyers across southern England where house prices are highest and average deposits are over £60,000.”
Stamp Duty reform and more housebuilding top the General Election wish-lists for the property sector.
General Election manifestos are yet to be printed but industry groups are already putting forward their priorities ahead of the 4 July vote.
Rightmove asked agents, landlords, homeowners and renters what they would like to see
The main concerns were Stamp Duty and undersupply of housing.
Data from Rightmove shows that in London, only 4% of homes for sale are exempt from the current Stamp Duty charges for all buyers, compared with 71% in the North East.
Rightmove’s property expert Tim Bannister said: “At the very least, the next Government should make the current changes to first-time buyer stamp duty charges in England permanent, as the higher thresholds introduced in 2022 are due to expire next year.
“But there’s also a bigger opportunity to reform stamp duty to encourage more movement up and down the property ladder. With such regional variations in property prices, increasing stamp duty thresholds in line with these regional variations would seem a logical first step for stamp duty reform.”
This has been echoed by UK Finance, which has suggested increasing Stamp Duty bands annually in line with the UK House Price Index.
Bannister added: “One way that could help to accelerate house-building is to streamline the planning process, which is highly complex and challenging. If the Government can create smoother processes, working closely with all key stakeholders, it could transform the delivery of new homes and produce more affordable housing. Not only could this help first-time buyers, it could also open up a big opportunity to help downsizers move to greener homes with lower running costs.”
There were also calls for mortgage lenders to review affordability criteria.
Rightmove’s mortgages expert Matt Smith added: “There’s an opportunity to unlock greater affordability in a responsible way, which could help more first-time buyers get on the ladder. First-time buyers are already taking out longer mortgage terms and lender innovation has included the introduction of longer-term fixed rates that are likely to be part of the solution as they help by ensuring certainty of payments.
“Various mortgage schemes have played their part and supported a number of people, and we know from our study that people would like to see new schemes introduced, but we think longer-term solutions would be more effective than short-term schemes. Either way, it’s most likely that regulatory change is needed, so it's critical that the government works with regulators and lenders from day one on any mortgage solutions, to ensure buy-in and take up, which will in turn create more options for first-time buyers.”
Another request in the Rightmove research is for the Government to help speed up the home buying and selling process.
Rightmove’s legal expert David Cox says: “It’s vital that the next government works closely with the property industry to come up with standardised solutions to help speed up the home-moving process, to benefit both home-movers and agents.
“Digitisation is key, and there has been innovation in this space, but it also needs a solid focus from the next government. A well-developed and adopted solution has the potential to not only accelerate the home-buying process, but also encourages a less stressful, better understood and more seamless transaction for home-movers.”
The Leasehold and Freehold Reform Bill was the final piece of legislation to pass before Parliament closed ahead of the General Election on July 4.
It has been described as a “muted win” as while the law introduces more transparency on charges and a ban on leasehold houses, there wasn’t enough time to include a cap on existing ground rents.
Proposals to include agency regulations as part of the legislation also failed.
Founder of the National Leasehold Campaign Katie Kendrick said it was a “real missed opportunity” that the Government did not manage to introduce a cap on ground rents, something they repeatedly promised but failed to deliver.
Co-founder Cath Williams, added: “There is lots to celebrate in the bill, most notably the removal of marriage value. This will save leaseholders with less than 80 years on their lease thousands of pounds in lease extension fees. We have had lots of comments in our campaign group who are crying with joy. This is truly life-changing for leaseholders with short leases.”
There is a chance that secondary legislation could be introduced to bring in a ground rent cap and improve the law but that will depend on the new Government’s priorities.
"The bill does not contain many of the important provisions that were promised by the Government. The commitment to remove ground rent for existing leaseholders, or even cap it at £250, has not been included.
"Another notable omission from the bill is the prevention of forfeiture, a draconian measure that allows a freeholder to repossess a flat for a debt of just £350.
"Frustratingly, most of the changes which have been included will not come into effect immediately or even within a specified timeline. These included-but-delayed changes include banning leasehold houses, and also abolishing marriage value which could make it cheaper for leaseholders with fewer than 80 years left to extend their leases.”
Timothy Douglas, head of policy and campaigns at Propertymark, added: “The recently passed leasehold legislation is far from perfect, but it is the start of reform to outdated legislation that was not fit for purpose.
“Once implemented the new laws will make it more commonplace to extend a lease and information about leasehold property will be made more transparent, which will make buying, selling and renting leasehold property easier.
“However, the legislation is a missed opportunity to tackle some key issues. Propertymark argued that the legislation needed to go further to incorporate the recommendations for the Regulation of Property Agents. At a time where building safety regulations have increased and become more complex, it is shortsighted that policy makers were unwilling to see the benefit to consumers of qualifying and licensing the competency of those who work in the property sector.
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