House prices have increased by 0.9% in Q3 this year, marking a third consecutive quarter of growth across the UK property market, Benham and Reeves reveals.

Benham & Reeves’ data shows that the average UK house price was £311,154 Q3 2024.

On an annual basis, the average UK house price also sat 2.2% higher when compared to Q3 2023.

The average house price in London in Q3 was £574,254, marking a 1.1% increase on an annual basis.

The market gap between the average mortgage approved price of a buyer (£278,890) and the asking price expectation of a seller (£370,672) sat at 32.9% for the quarter.

This figure was down from 35.5% the previous quarter, which Benham & Reeves says suggests that sellers have been more willing to lower their asking price expectations in order to secure a buyer.

In London, the gap between buyer (£524,685) and seller (£684,210) was 30.4% which also marks a quarterly narrowing.

Meanwhile, the average sold price across the UK in Q3 stood at £291,411, which is 21.4% below the average asking price of £370,672.

This gap has closed from 24.1% the previous quarter and remains smaller when compared to the 23.5% seen in Q1.

In London, the gap between asking price and sold price stands at 22.9%, which has also closed from 25.7% in Q2.

Data shows this is the smallest gap between asking and sold price seen since Q1 2023.

Benham and Reeves director Marc von Grundherr says: “2024 has been a far more positive year for the property market and this is becoming abundantly clear when analysing house price trends across each segment of the market.”

“We’ve seen consistently positive growth with respect to overall house prices across all three quarters of this year so far and this is despite the fact that buyers are still having to contend with significantly higher interest rates than they’ve become accustomed to in recent years.”

“What is clear is that sellers are taking a more pragmatic approach to selling, with the gap between the mortgage approved price of buyers and the asking price expectation of sellers narrowing. As a result, we haven’t seen the previous stalemate across the market whereby sellers refuse to budge on price, whilst buyers simply can’t afford to match them.”

“The result of both parties meeting in the middle has been an uptick in sales, a higher proportion of asking price achieved and a more measured, healthy rate of house price growth seen across the market.”