UK house prices rise December 2024

UK House Prices Rise for Fourth Consecutive Month in December, Ending 2024 on Strong Footing

The most recent statistics from Nationwide Building Society show that house prices in the UK increased noticeably for the fourth consecutive month in December 2024, therefore concluding the year on a “strong footing.” An average house now costs £269,426, a 0.7% increase over November and a 4.7% gain over December 2023. Notwithstanding the difficulties experienced by buyers, the increase in property prices shows a continuous upward trend in the UK housing market.

Since October 2022, when the market was affected by the aftermath of the contentious government mini-budget, this represents the highest yearly house price inflation. The increase in borrowing rates after the mini-budget caused notable market upheaval.

How strong is the housing market in 2024?

The chief economist of Nationwide underlined that property prices have not yet peaked at levels established in the summer of 2022, despite the robust ending to the year. They underlined that, considering the affordability problems still afflicting prospective purchasers, 2024 had proved to be a resilient year for the property market.

“Given the continuous affordability issues confronting potential buyers, mortgage market activity and house prices proved surprisingly robust in 2024,” they stated. “It was heartening that activity levels in the housing market grew over the course of 2024, with the number of mortgages authorised for house purchase each month increasing above pre-pandemic levels towards the end of the year.”

The average UK house value rise in 2024?

With house prices rising in 2024, the average value of a UK property climbed by over £12,000. By December 2024, the average house price rose from £257,443 at the end of 2023 to £269,426. This increase is noteworthy, especially since cost-of-living pressures and increasing interest rates are predicted to slow down the market.

Analysts have also mentioned forthcoming adjustments to stamp duty as a factor likely to generate instability in the housing market in early 2025. Effective from March 2025, the government’s intention to change the stamp duty limits in England and Northern Ireland is projected to boost house sales, especially among buyers trying to avoid further taxes.

What effects will the forthcoming stamp duty changes have?

The government momentarily raised the nil-rate range for stamp duty in September 2022 from £300,000 to £450,000 for first-time purchasers and from £125,000 to £250,000 for individuals acquiring another house. The administration said, however, in October 2024, that these temporary actions will be discontinued by the end of March 2025.

“This will cause a leap in transactions in the first three months of 2025, especially in March, and a corresponding period of weakness in the following three to six months,” the chief economist of Nationwide stated. “This will complicate the identification of the fundamental market strength.”

Which areas had the highest house price increase?

There were clear regional variations in the house price growth in 2024 across the United Kingdom. With property prices increasing by 7.1% annually, Northern Ireland exceeded everything else for the second year running.

England witnessed relatively sluggish development, nevertheless, with home prices rising by 3.1% year on year generally. But there was a clear “north-south divide.” Whereas in southern England the rise was more muted at 2.2%, in northern England the price of a normal house rose by 4.9%.

In the next months, what might buyers and sellers expect?

The head executive of Propertymark, a reputable group of estate agents, noted that the market may calm down once the expected surge of transactions in the early part of 2025 passes, presenting possible chances for buyers and sellers.

“Once the dust has settled following the anticipated rush towards April, buyers and sellers may reap the rewards of a slower-paced market, which may allow opportunities for greater negotiation on price from both buyers and sellers,” they said.

The effect of stamp duty modifications as the UK housing market moves into 2025 will still influence the market along with the continuous issues of affordability. The first quarter of the year will probably see more activity, then a possible time of adjustment when tax changes take effect.

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