The UK Housing Market Ends 2024 on a High Note
The UK housing market ended 2024 on a high note, with Nationwide’s House Price Index reporting a 4.7% year on year increase in house prices in December. This growth brought the average property value to £269,426, representing a 0.7% rise from November. This positive momentum followed a 1.2% monthly increase in November, highlighting a consistent trend of price growth in the year’s final months.
Regional Highlights
Nationwide’s report showed that all regions in the UK experienced price rises in the final quarter of 2024. Northern Ireland reported the greatest price increase for the second year running, up 7.1% in 2024. Scotland and Wales also reported solid growth with annual increases of 4.4% and 2.7% respectively.
In England, house prices increased by 3.1% overall, though growth varied significantly between regions. The North of England outperformed, with a 5.9% year-on-year increase, while the South of England saw more modest annual growth of 2.2%.
Property Types: A Closer Look
Nationwide’s analysis of property types revealed that terraced houses led the market in 2024, with prices rising by 4.4% over the year. Flats experienced their strongest annual growth since 2021, with a 4% increase. Meanwhile, semi-detached properties saw a 3.4% rise, and detached homes recorded a 3.2% gain.
Although detached properties showed relatively moderate growth in 2024, they have experienced the highest price gains in recent years. Since 2020, the average price of a detached home has surged by 27%, compared to an approximately 15% increase for flats over the same period.
Outlook for 2025
Looking ahead, the housing market is expected to experience some volatility in the first half of 2025 as upcoming changes to stamp duty take effect. A surge in transactions is anticipated in the first quarter as buyers rush to complete purchases before the April deadline to avoid paying higher taxes. This is likely to be followed by a slowdown in activity as the market adjusts to the new policy, potentially obscuring the underlying strength of the market.
Nationwide believe that as the economy continues to recover, activity in the housing market will strengthen as affordability constraints gradually ease. House price growth is expected to settle in the 2-4% range for the remainder of 2025 once the impact of stamp duty changes subsides.
Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
Take the first step towards securing your mortgage today.
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Source: Nationwide
