According to yesterday’s UK House Price Index from HM Land Registry, UK average house prices rose 4.6% in the year to December 2024, continuing the previous upward trend in November 2024, which saw a 3.9% increase. The average price of property in the UK in December was valued a t £268,000. UK house prices have fallen 0.1% since November.
The latest regional data continued to show significant regional variations in prices across the UK, with the Northern Ireland, Scotland and the North East leading the way with the highest annual growth of 9.0%, 6.9% and 6.7% respectively.
In contrast, London house prices flatlined in year to December with 0% growth. The monthly change in London was -0.3% highlighting affordability concerns in areas with the highest house prices.
Average house prices increased in England by 4.3% to £291,000, in Wales by 3.0% to £208,000 and in Scotland by 6.9% to £189,000, in the 12 months to December 2024.
The average house price for Northern Ireland was £183,000 in Q4 up 9.0% from the same period the year prior.
The North East was the English region with the highest house price inflation in the 12 months to December 2024, at 6.7%. This was up from 6.4% in the 12 months to November 2024.
Annual house price inflation was lowest in London, at 0.0% in the 12 months to December 2024. This was down from 0.5% in the 12 months to November 2024.
Industry reaction:
Richard Donnell, executive director at Zoopla, said: “We expect the rate of growth in the ONS index to slow over 2025 due to much greater choice of homes for sale, up 11 per cent on last year and higher stamp duty costs for most buyers from April. While the rate of inflation has increased, we don’t expect much change in average mortgage rates.
“Additionally, it’s positive that average earnings continue to rise faster than house prices, helping to reset housing affordability and improve access to the market.”
Yopa chief executive officer, Verona Frankish, said: “We saw a second consecutive reduction in the monthly rate of house price growth during December, but this is to be expected given the seasonal slowdown that comes due to the Christmas break.”
“The real indicator of market health is the annual rate of growth and, with house prices increasing by 4.6% over the course of last year, the market has performed very well indeed.”
“This is despite the fact that the nation’s buyers are continuing to contend with far higher borrowing costs than they’ve become accustomed to in recent years. However, we’ve already seen one interest rate reduction so far in 2025 and it’s shaping up to be a year of even greater positivity where the property market is concerned.”
Fine & Country managing director, Jonathan Handford, commented: “The housing market ended 2024 on a strong note, with demand continuing to drive prices upward as the sector heads into what looks set to be a transformative year.”
“Recent data aligns with other market reports highlighting an unusually active December — a period that typically sees a seasonal slowdown.”
“This momentum can partly be attributed to improving economic conditions for buyers throughout the past year, including interest rate cuts and inflation stabilising.”
“Many prospective buyers who had been hesitant, waiting for better financial conditions, may have found the confidence to move forward with their home purchases.”
Benham and Reeves director, Marc von Grundherr, remarked: “The UK property market has demonstrated a great deal of resilience, with the market moving forward at pace in 2024, despite the wider economic uncertainty that engulfed much of last year.”
“In London, house price growth remained static on an annual basis following a year of greater stagnation due to higher borrowing costs and higher house prices.
“However, the general consensus is that we’ve very much turned a corner now and 2025 is set to be a year of positive momentum across the capital’s property market.”
Fine & Country managing director, Jonathan Handford, stated: “Recent data aligns with other market reports highlighting an unusually active December — a period that typically sees a seasonal slowdown.”
“This momentum can partly be attributed to improving economic conditions for buyers throughout the past year, including interest rate cuts and inflation stabilising.”
“Many prospective buyers who had been hesitant, waiting for better financial conditions, may have found the confidence to move forward with their home purchases.”
Nathan Emerson, CEO of Propertymark, added: “With house prices remaining buoyant, this indicates that the wider economy continues to stabilise, and people are feeling confident in their personal financial positions. We have also witnessed interest rates track downward steadily since last summer and will hopefully see continued progression heading further into the year, should the Bank of England feel confident that conditions are safe to consider further base rate dips.
“With governments across all UK nations planning on building more new homes at scale over the coming years, if done effectively, this should help even out house prices and supply across the entire country.
“Alongside this, as confidence and affordability in the housing market continue to grow, and as homeowners witness enhanced levels of equity within their properties, we expect affordability pressures to further eease, allowing more aspiring and current homeowners to make their next home move.”