The UK property market as a whole saw a 3% annual rate of growth during 2024, whilst London house prices increased by 0.9% year on year.
The Benham and Reeves Property Market Index Review is a quarterly accumulation of house price data from the top four existing indices, providing the most comprehensive view of UK and London house price performance.
It looks at where the average house price sits overall when taking into account mortgage approved house prices from Halifax and Nationwide, seller expectations via the Rightmove House Price Index, and sold prices from the UK House Price Index.
Current property values
Based on a geometric mean of all four existing data sets, the index from Benham and Reeves shows the average UK house price sat at £302,464 during Q4 2024.
This marked a 0.1% quarterly increase, the fourth consecutive quarter of positive growth, completing a full house for 2024 in this respect. On an annual basis, the average UK house price also sat 3% higher when compared to Q4 2023.
In London, the average house price was £581,641 during the final quarter of last year. Whilst this marked a -1.1% decline versus Q3, it saw the London market finish the year up 0.9% versus Q4 2023.
“Following a prolonged period of higher interest rates and economic uncertainty, many were quick to call the demise of the UK property market at the start of last year, comments Director of Benham and Reeves, Marc von Grundherr, "This simply hasn’t been the case and, in fact, we’ve seen a full house of positive quarterly growth, with property values also gaining ground on an annual basis.
"This positivity has only continued as we’ve headed into 2025 and we’ve already seen market sentiment boosted by a further cut to interest rates.
"Whilst we expect that the impending stamp duty deadline will help to quicken the pace of house price growth over the first three months of this year, the general consensus is that this growing momentum will continue to build beyond 1st April and we look set for another year of positive growth.
"At the same time, we’re continuing to see sustained growth across the rental market, with rental values climbing consistently. This has helped to boost the yields on offer to the nation’s buy-to-let investors and so it remains a very worthwhile endeavour, despite the uncertainty posed by the incoming Renters’ Rights Bill.”