House prices in December 2024 were 3.3% higher than the same month a year earlier.
The latest Halifax House Price Index reveals key insights into the housing market as we close out 2024. With a year of steady growth, easing mortgage rates, and regional variances, understanding these figures is essential for anyone navigating the property market. Let’s break it down.
Key Highlights
- Average house price: £297,166 (a slight dip of -0.2% in December).
- Annual growth: +3.3%, reflecting a steady recovery throughout the year.
- Quarterly growth: +1.4%, continuing a positive trend from mid-2024.
Monthly Trends
December saw a slight decline in house prices, down by -0.2%, ending a streak of five consecutive monthly increases. Despite this, the annual growth rate remained positive, showing that the housing market is holding firm amidst evolving economic conditions.
The latter half of 2024 was marked by increasing mortgage demand, spurred by falling mortgage rates and rising incomes. These factors eased financial pressures for many buyers, providing momentum for house price growth.
Annual Growth Explained
Over the course of 2024, house prices rose by +3.3%. This growth reflects a resilient market, supported by:
- Lower mortgage rates: Falling interest rates encouraged more buyers to secure loans.
- Rising incomes: Increased affordability made home-buying more feasible for many.
- Stamp Duty changes: Impending policy adjustments motivated first-time buyers to act quickly.
- Supply-demand imbalance: A limited number of properties on the market helped sustain price increases.
Regional House Price Performance
House price growth varied significantly across regions. Here’s how different areas fared:
- Northern Ireland: Strongest growth at +7.4%, with average house prices now at £205,895.
- North West: Leading in England with +5.3% annual growth; average price £238,832.
- Wales: Prices rose by +4.6%, with homes now averaging £226,646.
- Scotland: Modest growth of +2.4%; average property price £209,959.
- London: Highest average property price at £547,614, with annual growth of +3.3%.
What’s Driving These Changes?
Several factors influenced these trends:
- Easing Mortgage Rates
Falling rates helped boost buyer confidence and made borrowing more affordable. - Income Growth
Rising wages provided a financial cushion for many buyers, enabling them to consider higher-priced properties. - Stamp Duty Adjustments
Anticipated changes incentivised buyers, particularly first-time buyers, to act before thresholds shifted. - Supply Constraints
Fewer properties on the market created competition, further driving up prices in many areas.
Looking Ahead to 2025
The housing market outlook for 2025 remains cautiously optimistic. While mortgage rates are expected to continue their gradual decline, affordability challenges are likely to persist. Key factors to watch include:
- Economic stability: Positive employment figures will be crucial in maintaining buyer confidence.
- Bank Rate trajectory: The pace of reductions in interest rates will influence borrowing costs and, in turn, buyer activity.
- Supply-demand dynamics: A balanced market will be essential for sustainable price growth.
What This Means for You
Navigating the housing market can be challenging, especially with fluctuating prices and varying regional trends. Whether you’re a first-time buyer, looking to move, or considering an investment property, understanding how these factors impact your plans is crucial.
How We Can Help
At Kerr & Watson, we specialise in providing tailored mortgage advice that aligns with your unique circumstances. With expert knowledge of lender criteria and access to the latest market insights, we’re here to guide you every step of the way.
From finding the right mortgage deal to understanding affordability, our team simplifies the process, so you can make informed decisions with confidence.
Get in touch with us today to discuss your plans and explore your options.
Read the full report for more insights on the current state of the UK housing market: Halifax Price Index December 2024
Source: Halifax
