9:12 AM, 7th January 2025, About A day ago
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House prices in the UK ended 2024 with a year-on-year increase of 3.3%, despite a slight 0.2% dip in December, Halifax reports.
It says that the average property value now stands at £297,166.
Northern Ireland maintained the strongest property price growth with an annual increase of 7.4%.
House prices in Wales rose 4.6%, while Scotland saw a more modest increase of 2.4%.
In England, the North West experienced the highest growth at 5.3%.
The lender’s head of mortgages, Amanda Bryden, said: “The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards.
“In the latter half of the year, house prices grew in response to the falls in mortgage rates, alongside income growth, both leading to financial pressures somewhat easing for buyers.”
She adds: “Impending changes to Stamp Duty thresholds have also given prospective first-time buyers even greater motivation to get on the housing ladder and bring any home-buying plans forward.
“Together, these elements meant mortgage demand picked up, hitting the highest level in over two years and back to levels seen pre-pandemic.”
In many areas, Halifax says there are issues with demand outstripping supply and mortgage affordability in 2025 will be a growing issue.
Director of Benham and Reeves, Marc von Grundherr, said: “A marginal monthly decline in the rate of house price growth during December highlights the usual seasonal lull caused by the festive break.
“However, a strong annual rate of growth demonstrates a market that has very much found its form during the latter stages of 2024, following a period of prolonged economic turbulence largely driven by a spike in interest rates.”
The chief executive of Yopa, Verona Frankish, said: “December saw a first monthly decline in house prices following five consecutive months of positive growth, albeit a very slight drop, but this is certainly no cause for concern given the seasonality at play, with the market finishing the year in a far stronger position on an annual basis.
“In fact, a pause for breath was probably required ahead of what is set to be a very busy first quarter, as the stamp duty countdown continues with relief thresholds set to increase as of 1st April this year.”
Tom Bill, the head of UK residential research at Knight Frank, said: “The current rate of house price growth will come under more pressure as higher borrowing costs triggered by the Budget start to bite.
“A number of buyers are still sitting on sub-4% mortgage offers made before October, which has supported demand in recent months.
“Activity has also been temporarily boosted ahead of April’s stamp duty increase but a recent dip in mortgage approvals is a sign that cracks from the Budget are starting to show.”
Karen Noye, a mortgage expert at Quilter, said: “Despite the challenges it faced throughout 2024, the housing market ended the year looking considerably stronger than many might have anticipated 12 months ago.
“December is typically a quiet month while the festivities take centre stage, and other plans such as moving home are put on the back burner.
“However, on a quarterly basis prices were still up 1.4%, and on an annual basis, prices rose by a solid 3.3%.”
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