As Halifax reveals the latest, industry experts weigh in on what's ahead for 2025
UK house prices increased by 3.3% in 2024, ending the year with an average property value of £297,166, according to Halifax.
On a monthly basis, prices dipped slightly in December, declining by 0.2% following five consecutive months of growth.
Northern Ireland led the UK in annual property price growth, with values rising 7.4% in December to an average of £205,895. Wales also saw strong growth, with prices up 4.6% year-on-year, bringing the average property price to £226,646.
The latest Halifax House Price Index also showed a 2.4% increase in house prices in Scotland – the smallest increase among UK nations, with the average property costing £209,959. England’s North West region recorded the strongest price growth within England, with a 5.3% rise year-on-year, pushing average property values to £238,832.
Meanwhile, London retained its position as the UK’s most expensive market. Average house prices in the capital rose by 3.3% to £547,614.
Amanda Bryden (pictured left), head of mortgages at Halifax, attributed the growth in the latter half of the year to easing financial pressures for buyers, thanks to falling mortgage rates and income growth.
“The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards,” Bryden said. “Falling mortgage rates, alongside income growth, reduced financial pressures on buyers, while impending changes to Stamp Duty thresholds motivated many first-time buyers to accelerate their homebuying plans.”
For Jason Tebb (pictured centre), president of property platform OnTheMarket, the latest Halifax figures show the housing market’s “remarkable resilience,” with encouraging levels of activity and interest.
“Affordability is keeping a lid on property values to an extent as buyers are unwilling or unable to pay inflated prices,” he said. “Higher interest rates have an impact on activity and willingness to commit to a property purchase, so news that some lenders have started cutting their mortgage rates this month, combined with expectations of further base rate reductions this year, should boost confidence and transactions – a better indicator of the health of the market than house price movements.”
Bryden forecast modest house price growth for 2025, but cautioned that mortgage affordability would remain a challenge for many buyers, especially if the bank rate would be decreased more slowly than previously predicted.
“However, providing employment conditions don’t deteriorate markedly, buyer demand should hold up relatively well,” she said.
Tebb agreed, saying he also expects “a flurry of activity ahead of the end of the Stamp Duty concession”, setting up what could be a busy spring market.
“2025 will not be without its own fair share of challenges,” said Karen Noye (pictured right), a mortgage expert at wealth management company Quilter. “Nonetheless, the prospect of even slightly lower rates could be enough to help prop up demand for now.
“For those looking to move home or buy their first property in 2025, it will be key to seek professional financial and mortgage advice to ensure they make the best possible decisions based on their circumstances and goals.”
Any thoughts on the latest Halifax House Price Index? Share them with us by leaving a comment in the discussion box at the bottom of the page.
