The average house price in the UK is £263,600 as of January 2024 (published in February 2024).
Property prices have not changed compared to the previous month and they have fallen -0.5% compared to a year ago.
Key figures
| Type of property | Average house price in January 2024 | Average house price in December 2023 | Average house price in November 2023 | Year-on-year change to January 2024 (£) | Year-on-year change to January 2024 (%) |
|---|---|---|---|---|---|
| All property | £263,600 | £263,700 | £263,700 | -£1,200 | -0.5% |
| Flats | £189,600 | £189,800 | £190,000 | -£1,000 | -0.5% |
| Terraced houses | £231,800 | £231,600 | £231,500 | -£1,100 | -0.5% |
| Semi-detached houses | £268,700 | £268,600 | £269,100 | -£1,500 | -0.6% |
| Detached houses | £445,100 | £446,000 | £446,400 | -£5,500 | -1.2% |
The graph shows how the UK’s average house price has changed in the last 10 years, now at £236,600.
This month’s House Price Index shows the recent resilience of the housing market to higher mortgage rates and cost of living pressures.
As we outline in the data, there’s a growing confidence to move house again. We’re seeing evidence that 4-5% mortgage rates are becoming less of a barrier to sales - although household buying power is still lower than before rates started rising over 2022.
House prices falling in 5 regions; rising in 7 regions
Five regions in the south of England are seeing house prices fall, led by the East of England (-2.1%).
However, house prices are rising again in the remaining four regions of England, as well as in Wales (+0.3%), Scotland (+2.2%) and Northern Ireland (+4.3%). Scotland is the only region which has remained in positive growth over the last year.
Are house prices falling in your area?
House price falls slow amidst rising sale numbers
Our House Price Index continues to record a slowdown in the rate of UK house price falls.
House prices have fallen -0.5% in the last year, whereas this figure was -1.4% back in October 2023. This puts the current average house price -1.5% below the peak of £268,000 in October 2022.
The average estate agent is currently agreeing 6 sales each month, compared to 5.2 a year ago. This shows there does not need to be further house price falls for sales numbers to be at a healthy level.
The graph below shows annual house price inflation across UK regions since 2018. All regions are showing a small uplift in house price growth in response to more sales being agreed and better levels of housing affordability after recent price falls.
Housing market activity continues to improve at the start of 2024
All measures of sales market activity are improving as pent-up demand returns to the market.
15% more property sales agreed
The number of sales agreed - one of the most reliable indicators of housing market health - is 15% higher than a year ago.
This uplift shows greater confidence to move house and more realistic pricing from sellers. The North East (+17%) and London (+16%) are leading the rebound in sales numbers.
The chart shows the year-on-year percentage change in agreed property sales in UK regions.
11% uplift in buyer demand
Meanwhile, buyer demand is 11% higher than a year ago as buyers return to the housing market in 2024.
21% more homes for sale
Growing confidence among sellers is boosting the number of homes for sale, now 21% higher than a year ago.
This is increasing choice for would-be buyers and supporting the uplift in completed sale numbers.
Fewer asking price reductions but they remain above average
A small proportion of sellers are reducing their asking price as a way to attract more buyer interest.
These reductions are less common than a year ago but still above average, showing that buyers continue to be price sensitive in the face of high mortgage rates.
The South East and East of England are seeing the most asking price reductions of 5% or more.
A three-tier housing market now firmly established
The last 18 months have created a distinct three-tier housing market, with notable variations in house price inflation.
Higher mortgage rates and cost of living pressures have been influential in distinguishing these three markets, which are primarily defined by the differing affordability of housing.
1. Southern England regions
The East of England, South East and South West have seen the largest house price falls in the last year.
The average home across these three regions is £344,000, which is +30% above the UK average. Rising mortgage rates and reduced household buying power have hit these higher-priced markets harder than more affordable places.
However, price falls in these regions are now starting to moderate as the market rebalances to higher mortgage rates.
2. London
London’s housing market is different to the rest of Southern England. It’s the most expensive place to buy a house in the country with an average price of £523,400 - almost twice the UK average.
However, house price growth has been weak over the last 7 years, and this has gradually improved affordability and opened the market to more buyers than before this.
London’s house prices are rebounding faster than the wider Southern regions, explained by an uplift in demand and lower growth in the supply of homes for sale in the capital (7% in London vs 21% in the South).
3. The rest of the UK
While house price growth has slowed rapidly across the rest of the UK in the last 12 months, there have not been many instances of falling house prices.
Average house prices are 28% below the UK average, which means high mortgage rates have had less of an impact on market activity and house prices than in the South of England and London.
Mortgage rates fall but remain above 4%
Mortgage rates falling back to where they were a year ago has been instrumental in improving housing market sentiment and activity in recent weeks.
Faster earnings growth and rising incomes are also starting to offset higher borrowing costs, albeit slowly.
I expect mortgage rates to stay between 4% and 5% for much of 2024. Lenders have been taking any deals below 4% off the market most recently, due to a modestly increased cost of finance for them. This signals that house price rises will remain between 0% and low single-digit rises.
My consistently-held view is that 5% mortgage rates are the tipping point to create annual house price falls, while rates over 6% for a sustained period would lead to double-digit falls.
What to expect in the housing market in 2024
There’s clear demand from homeowners and first-time buyers looking to move or buy their first home in 2024. This will support higher sales volumes but I don’t expect house price growth to be any greater than it is now.
The housing market is still adjusting to higher mortgage rates and reduced buying power, the impact of which has varied across the country.
If you’re planning to sell your home this year, remain realistic on pricing and celebrate the fact that your home is likely to attract more buyer interest now than last year. This increases the likelihood of a successful sale.
If you’re planning to buy a home, expect mortgage rates to remain within the 4% to 5% range. They could move a little lower over the year, but this hinges on the Bank Rate and if (and when) it’s cut later in the year.
Momentum in the sales market has been building over the last five months. I believe the housing market is on track for 10% more sales in 2024 than in 2023, totalling 1.1 million, as greater supply boosts the potential for more sales.
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Download the House Price Index: February 2024 (PDF, 270kB)
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About our House Price Index
The Zoopla House Price Index (HPI) is a repeat sales-based price index, using sold prices, mortgage valuations and data for recently agreed sales. The index uses more input data than any other and is designed to accurately track the change in pricing for UK housing. It’s a revisionary index and non-seasonally adjusted.
The HPI for February 2024 uses the most recent full data available up to January 2023. We revise previous data where needed to ensure the most accurate representation of the market at any given time.