UK house prices rise for fourth month in a row

UK house prices rose for the fourth consecutive month in December, ending 2024 on a "strong footing," according to Nationwide. The average home price reached £269,426, up 0.7% from November and 4.7% year-on-year.  

This marks the highest annual price growth since October 2022, when Nationwide recorded a 7.2% increase following the financial turmoil caused by Liz Truss and Kwasi Kwarteng’s mini-budget.  

Robert Gardner, Nationwide’s chief economist, noted that while 2024 ended strongly, average home prices remained below the peak reached in summer 2022. He highlighted the housing market's resilience despite affordability challenges, with mortgage approvals exceeding pre-pandemic levels by the year’s end.  

Over 2024, the typical UK home increased in value by nearly £12,000, from £257,443 at the close of 2023 to £269,426 in December.  

Nationwide expects the government’s planned stamp duty changes in England and Northern Ireland to cause market volatility in early 2025. The temporary stamp duty relief, introduced in September 2022, is set to end on 31 March, as announced by Rachel Reeves in October.  

Gardner predicted a surge in transactions before the deadline, particularly in March, followed by a potential slowdown over the next three to six months, complicating assessments of the market’s underlying strength.  

All UK regions experienced price growth in 2024, with Northern Ireland leading for the second consecutive year, recording a 7.1% annual increase.  

Across England, overall prices were up 3.1% year on year, although Nationwide said there was a clear “north-south divide”. The price of a typical home in the north of England increased by 4.9%, while southern England registered an increase of 2.2% year on year.

Nathan Emerson, the chief executive of the estate agents’ body Propertymark, said: “Once the dust has settled following the anticipated rush heading towards April, buyers and sellers may reap the rewards of a slower-paced market, which may allow opportunities for greater negotiation on price from both buyers and sellers.”