UK house prices ended 2024 with annual growth of 3.3 per cent, despite a small dip of 0.2 per cent in December, according to the latest Halifax house price index released today.
The typical UK property now costs £297,166, with the annual growth rate showing a slight decline from November’s figure of 4.7 per cent.
Northern Ireland maintained its position as the UK’s strongest-performing housing market, with property prices rising by 7.4 per cent over the year.
The average house price in Northern Ireland now stands at £205,895, marking the highest percentage growth among all UK nations and regions.
Wales saw robust growth in house prices, with a 4.6 per cent annual increase taking the average property value to £226,646.
Scotland experienced more modest growth compared to other UK nations, with prices rising by 2.4 per cent over the year to reach an average of £209,959.
In England, the North West led regional growth with house prices rising 5.3 per cent year-on-year, bringing the average property cost to £238,832.
London maintained its position as the UK’s most expensive housing market, with average prices reaching £547,614, representing a 3.3 per cent increase compared to the previous year.
Regional House Price Growth in 2024
Northern Ireland: +7.4%
North West: +5.3%
Wales: +4.6%
London: +3.3%
Scotland: +2.4%
The figures show significant variations in house price growth across the UK nations and regions during 2024, with Northern Ireland’s performance particularly strong compared to other areas.
Head of Mortgages at Halifax Amanda Bryden said: “UK house prices finished 2024 up +3.3 per cent over the year, with the average house price £297,166. Prices fell back slightly in December, by -0.2 per cent, following five consecutive monthly increases.
“The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards. In the latter half of the year, house prices grew in response to the falls in mortgage rates, alongside income growth, both leading to financial pressures somewhat easing for buyers.
“Impending changes to Stamp Duty thresholds have also given prospective first-time buyers even greater motivation to get on the housing ladder and bring any home-buying plans forward.
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“Together, these elements meant mortgage demand picked up, hitting the highest level in over two years and back to levels seen pre-pandemic.
“In many areas across the country, house prices were also buoyed by demand outstripping supply, possibly further amplified by homeowners holding off putting their property on the market – perhaps in anticipation of mortgage rates reducing further.
“Where does that leave the housing market for 2025? While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement of upcoming Stamp Duty policy changes, mortgage affordability will remain a challenge for many, especially as the bank Rate is likely to come down more slowly than predicted.
“However, providing employment conditions don’t deteriorate markedly from a more recent softening, buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year.”