Introduction to the Property Market Index Review
The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market finished 2024 on the front foot, with the UK market as a whole seeing a 3% annual rate of growth, whilst London house prices increased by 0.9% year on year.
The Benham and Reeves Property Market Index Review is a quarterly accumulation of house price data from the top four existing indices, providing the most comprehensive view of UK and London house price performance.
It looks at where the average house price sits overall when taking into account mortgage approved house prices from Halifax and Nationwide, seller expectations via the Rightmove House Price Index, and sold prices from the UK House Price Index.
Understanding the Property Market Index Review
The Property Market Index Review is an essential tool for anyone looking to buy, sell, or invest in the UK property market. It provides a detailed analysis of the current state of the market, including average house prices, quarterly and annual growth rates, and trends in the rental market.
By analyzing data from the top four existing indices, the review provides a comprehensive view of the UK and London property markets, helping individuals make informed decisions about their property investments.
Current Property Values
Current property values
Based on a geometric mean of all four existing data sets, the index from Benham and Reeves shows the average UK house price sat at £302,464 during Q4 2024.
This marked a 0.1% quarterly increase, the fourth consecutive quarter of positive growth, completing a full house for 2024 in this respect. On an annual basis, the average UK house price also sat 3% higher when compared to Q4 2023.
In London, the average house price was £581,641 during the final quarter of last year. Whilst this marked a -1.1% decline versus Q3, it saw the London market finish the year up 0.9% versus Q4 2023.
Expert Insights
Director of Benham and Reeves, Marc von Grundherr, said, “Following a prolonged period of higher interest rates and economic uncertainty, many were quick to call the demise of the UK property market at the start of last year. This simply hasn’t been the case and, in fact, we’ve seen a full house of positive quarterly growth, with property values also gaining ground on an annual basis.
This positivity has only continued as we’ve headed into 2025 and we’ve already seen market sentiment boosted by a further cut to interest rates.
Whilst we expect that the impending stamp duty deadline will help to quicken the pace of house price growth over the first three months of this year, the general consensus is that this growing momentum will continue to build beyond 1st April and we look set for another year of positive growth.
At the same time, we’re continuing to see sustained growth across the rental market, with rental values climbing consistently. This has helped to boost the yields on offer to the nation’s buy-to-let investors and so it remains a very worthwhile endeavour, despite the uncertainty posed by the incoming Renters’ Rights Bill.”
Rental Market Trends
The rental market has seen sustained growth, with rental values climbing consistently. This has helped to boost the yields on offer to the nation’s buy-to-let investors, making it a worthwhile endeavour despite the uncertainty posed by the incoming Renters’ Rights Bill.
The growth in the rental market is expected to continue, with the demand for rental properties remaining high. This is good news for investors, as it provides a steady stream of income and the potential for long-term capital appreciation.
Conclusion
In conclusion, the UK property market has finished 2024 on a positive note, with a 3% annual rate of growth and London house prices increasing by 0.9% year on year. The Property Market Index Review provides a comprehensive view of the current state of the market, helping individuals make informed decisions about their property investments.
With the rental market seeing sustained growth and the demand for rental properties remaining high, it is an exciting time for investors. However, it is essential to stay up-to-date with the latest market trends and expert insights to make the most of the opportunities available.
Frequently Asked Questions
Q: What is the Property Market Index Review?
A: The Property Market Index Review is a quarterly accumulation of house price data from the top four existing indices, providing the most comprehensive view of UK and London house price performance.
Q: What is the current average UK house price?
A: The average UK house price sat at £302,464 during Q4 2024, marking a 0.1% quarterly increase and a 3% annual increase.
Q: Is the rental market a good investment opportunity?
A: Yes, the rental market has seen sustained growth, with rental values climbing consistently, making it a worthwhile endeavour for investors despite the uncertainty posed by the incoming Renters’ Rights Bill.
Q: What is the outlook for the property market in 2025?
A: The general consensus is that the growing momentum in the property market will continue to build beyond 1st April, with the impending stamp duty deadline expected to help quicken the pace of house price growth over the first three months of the year.
