Overview

• Annual house price growth slowed to 2.8% in the 12 months to July, putting the average UK home at about £270,000, according to ONS figures.
• Average private rents rose 5.7% year on year in August to £1,348, with rent inflation easing for a ninth consecutive month.
• Regional gaps widened, with the North East up 7.9% annually and London up just 0.7%, and 13 London boroughs recorded year-on-year price declines.
• ONS affordability analysis for 2024 shows a median price-to-income ratio of 7.9 in England, roughly 13 times income needed for lower earners, and London unaffordable across all income deciles.
• With CPI stuck at 3.8% in August and the Bank of England holding the base rate at 4%, mortgage rates have firmed as experts warn demand is cooling and segments such as flats and some new builds are under strain.