The latest House Price Index (HPI) data from e.surv and Acadata shows a shift in the market, with the average sale price of a home in England and Wales increasing by 0.1%. This follows four consecutive months of decline.
Strong wage growth and continued first-time buyer demand, boosted by Stamp Duty relief, are seen as key factors supporting prices. However, year-on-year house prices remain in decline.
Rob Owens, head of research at e.surv, said: “For the short-term at least, the conditions look favourable for continued, modest growth. Key market indicators like mortgage approvals are on the rise and the continued underlying housing shortage remains.
“Despite this month’s increase, year-on-year prices are still in decline. As a measure of true housing inflation, our HPI doesn’t reflect the extent of the recovery reported in other indices based on mortgage applications or asking prices.”
London and the South East continue to struggle, with affordability and mortgage rates preventing many from entering the market. In contrast, the North is leading the recovery, with prices rising in the North East and North West. Yorkshire and the Humber, the Midlands, and Wales are also showing signs of improvement.
The annual re-weighting of data has had a slight dampening effect on prices due to a higher proportion of flats in the housing mix. Almost 18% of properties sold in 2024 were flats, reflecting increased demand for more affordable homes.
