House Prices and Mortgages: Key Economic Indicators in the UK Property Market
The UK property market shows many signs. Investors watch trends and shifts. Data now tells us how house prices, mortgage approvals, and building work move. In this article, we look at numbers for house prices, mortgage approvals, and new and finished homes. We keep a close view on Houses in Multiple Occupation for those with this focus.
House Price Trends
The UK House Price Index gives clear numbers. Data shows that average house prices went up by 4.6% over one year from December 2023 to December 2024. On a seasonally adjusted watch, average prices increased by 0.3% from November to December 2024. This rise matters to investors who search for properties to turn into HMOs.
The growth varies with location. In Northern Ireland, Scotland, and the North East, prices climbed the most. For example, Northern Ireland recorded a strong gain, even if its data is based on Q4 2024. In London, prices stayed fixed while Wales and the South West moved slowly. Investors in HMOs might pick areas where growth is higher.
Mortgage Approvals: A Leading Indicator
Mortgage approvals help us see house sales before they happen. The Bank of England tells us that mortgage approvals jumped after the Covid lockdowns. In January 2025, approvals climbed by 18% compared to January 2024. Yet, the monthly total still mirrors December 2024 figures. January 2025 saw 66,189 new loans, up from 55,941 in January 2024. These numbers affect HMO investors as a rise in mortgage approvals can mean more buyers and a busy market.
Housing Starts and Completions
Building work shows another side of the market. New figures show 36,580 house completions in England in Q3 2024. This number fell by 13% compared to Q2 2024 and by 12% compared to Q3 2023. On the other hand, house starts grew to 29,310. That marks a 17% jump since Q2 2024 and a 38% rise compared to the same quarter last year.
These changes come with new building rules. Builders now adjust projects to handle costs from new energy and electric vehicle charging regulations set in June 2023. HMO investors should note how these building rules might change future plans.
Conclusion
Economic data now shows a mixed but active UK property market. House prices climb, mortgage approvals show strong climbs, and house starts and completions give a varied view. Investors in Houses in Multiple Occupation must note differences among regions and the effects of new rules.
When you plan your next move in property, let these numbers help you decide. For more updates and clear data, check the UK House Price Index and Bank of England resources.
Sources
- UK House Price Index: data downloads December 2024
- Bank of England: Mortgage Approvals Data
- Ministry of Housing, Communities and Local Government (MHCLG): Housing starts and completions
Invest wisely and keep current!
