Average UK house prices have increased by 4.6% to £268,000 in the 12 months to December 2024, the Office for National Statistics (ONS) reveals.
The latest data shows that the annual growth rate is up from 3.9% in the 12 months to November 2024.
Average house prices increased in England by 4.3% to £291,000, in Wales by 3.0% to £208,000 and in Scotland by 6.9% to £189,000, in the 12 months to December 2024.
The average house price for Northern Ireland was £183,000 in Q4 up 9.0% from the same period the year prior.
The North East was the English region with the highest house price inflation in the 12 months to December 2024, at 6.7%. This was up from 6.4% in the 12 months to November 2024.
Annual house price inflation was lowest in London, at 0.0% in the 12 months to December 2024. This was down from 0.5% in the 12 months to November 2024.
Commenting on the latest data, Yopa chief executive officer Verona Frankish says: “We saw a second consecutive reduction in the monthly rate of house price growth during December, but this is to be expected given the seasonal slowdown that comes due to the Christmas break.”
“The real indicator of market health is the annual rate of growth and, with house prices increasing by 4.6% over the course of last year, the market has performed very well indeed.”
“This is despite the fact that the nation’s buyers are continuing to contend with far higher borrowing costs than they’ve become accustomed to in recent years. However, we’ve already seen one interest rate reduction so far in 2025 and it’s shaping up to be a year of even greater positivity where the property market is concerned.”
Benham and Reeves director Marc von Grundherr states: “The UK property market has demonstrated a great deal of resilience, with the market moving forward at pace in 2024, despite the wider economic uncertainty that engulfed much of last year.”
In London, house price growth remained static on an annual basis following a year of greater stagnation due to higher borrowing costs and higher house prices.
However, the general consensus is that we’ve very much turned a corner now and 2025 is set to be a year of positive momentum across the capital’s property market.”
Fine & Country managing director Jonathan Handford comments: The housing market ended 2024 on a strong note, with demand continuing to drive prices upward as the sector heads into what looks set to be a transformative year.”
“Recent data aligns with other market reports highlighting an unusually active December — a period that typically sees a seasonal slowdown.”
“This momentum can partly be attributed to improving economic conditions for buyers throughout the past year, including interest rate cuts and inflation stabilising.”
“Many prospective buyers who had been hesitant, waiting for better financial conditions, may have found the confidence to move forward with their home purchases.”
MT Finance director Tomer Aboody adds: “With December figures showing an increase in house prices on an annual basis, the market finished the year on a confident high. With interest rates reducing, along with inflation, many buyers felt confident enough to finally make their move.”
“As 2025 gets underway, there is still uncertainty as to how October’s Budget will fully impact the market. However, with a reduction in interest rates already, and possibly a couple more to come, lower mortgage rates would help stave off any negativity, bringing buyers to the table.”