Half gained value last year
Around 9.2 million, or approximately a third of all homes in the UK, saw price declines of 1% or more in 2024, according to new analysis from property website Zoopla.
This figure marks an improvement from 2023, when 12.8 million homes recorded price drops. Close to six million homes experienced minimal changes, with prices fluctuating by +/-1%.
Half of the UK’s 30 million homes increased in value during 2024, according to new analysis from property website Zoopla.
The rebound in house prices follows a year of declines in 2023, which were driven by weaker buyer demand and higher borrowing costs.
Zoopla’s data shows that 15 million homes across the UK gained at least 1% in value in 2024, a 42% rise from the 10.6 million homes that posted gains the previous year. Among properties that appreciated in value, the average increase was £7,600, with 6.9 million homes registering price increases of £10,000 or more.
Zoopla’s analysis highlights a continued disparity between housing markets in Southern England and the rest of Britain. Homes in Southern England were less likely to register value gains in 2024 due to higher property prices and the impact of elevated mortgage rates on affordability.
Just 36% of homes in Southern England increased in value by at least 1% last year, while 41% experienced price declines averaging £8,700. By contrast, 63% of homes in northern England and Scotland recorded price gains, reflecting greater affordability in those regions.
Coastal towns in Kent and East Sussex were among the weakest markets, with fewer than 10% of homes posting value increases. More than three-quarters of homes in these areas saw small price declines.
Factors contributing to this trend include the waning of the pandemic-fuelled demand for more space, as more workers returned to office-based roles. Additionally, rising council taxes for second homeowners have prompted some to sell, adding to supply pressures in these coastal markets.
Lower mortgage rates and rising incomes helped improve housing affordability in 2024, particularly in Southern England. The number of homes in the region that gained value rose from 2.8 million in 2023 to 4.8 million in 2024. Wiltshire, Gloucestershire, and Oxfordshire saw about half of all homes register price increases, while Berkhamsted in Hertfordshire recorded the largest average gain nationwide at £24,500.
Northern England and Scotland outperformed Southern England due to lower house prices relative to incomes, providing more room for growth despite higher borrowing costs. In the North East, 70% of homes — about 820,000 properties — gained value, with one in five homes appreciating by £10,000 or more. Peterlee in County Durham led the region, with 83% of homes increasing in value by an average of £6,100.
In the North West, 63% of homes saw price gains averaging £4,400, the highest average increase among UK regions. Cheshire recorded some of the strongest performance, with six in 10 homes in areas like Congleton and Knutsford posting gains of £10,000 or more.
Scotland and Yorkshire and the Humber also performed well, with around 60% of homes increasing in value. Biggar in Scotland saw an average gain of £19,300, while Ripon in Yorkshire and the Humber recorded gains averaging £15,700.
Richard Donnell (pictured), executive director at Zoopla, said the housing market’s recovery in 2024 was uneven across the country.
“There is headroom for prices to increase in markets where housing is affordable compared to incomes, which covers many parts of northern England and Scotland,” he said. “In contrast, affordability is more of a constraint on price rises in Southern England, where the market continues to adjust to higher borrowing costs.”
Donnell noted that faster income growth is helping to repair affordability and support housing decisions, adding that momentum from 2024 is expected to carry into 2025.
“We expect more people to move home in 2025 than in 2024 despite uncertainty over the economic outlook and broadly static mortgage rates,” he said.
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