The UK's property landscape is undergoing a dramatic and unexpected shift, according to the latest House Price Index from the Office for National Statistics (ONS). The data reveals a tale of two markets, with the long-dominant South of England stalling while other regions, particularly Scotland, experience significant growth.
A Stagnant South East
The most striking finding is the stagnation in the South East of England. Once the engine of the UK's property price growth, the region saw average prices remain virtually flat, inching up a mere 0.1% in the 12 months to May 2024. This sluggish performance is a clear indicator of cooling demand and economic pressure in the capital's commuter belt.
Scotland's Property Boom
In stark contrast, Scotland emerged as the UK's standout performer. House prices north of the border surged by an impressive 4.9% over the same period. This robust growth suggests a resilient and attractive market, potentially driven by factors like relative affordability and strong local demand.
Wales and Northern Ireland Hold Strong
The positive momentum wasn't confined to Scotland. Both Wales and Northern Ireland demonstrated healthy market activity, with annual price increases of 1.9% and 4.1% respectively. This indicates a broader trend of strength in markets outside the traditional English hotspots.
The National Picture and Economic Context
On a UK-wide scale, the average house price saw a modest increase of 1.5% in the year to May 2024, bringing the typical property value to £282,000. This gradual growth occurs against a backdrop of persistent inflation and higher mortgage rates, which have undoubtedly tempered buyer enthusiasm and altered affordability calculations for many households.
The ONS report, which is considered the most comprehensive and reliable measure of house price inflation due to its use of actual completed sales data, paints a picture of a fragmented and rebalancing UK property market.
