UK house prices ended 2024 in a strong position, posting a 4.7% increase compared to December 2023. While prices remain just below the all-time high seen in summer 2022, the resilience of the housing market has been noteworthy, according to the latest Nationwide House Price Index.
Regional Highlights
Northern Ireland stood out as the best-performing area for the second consecutive year, with house prices rising by an impressive 7.1% year-on-year. Scotland also showed solid growth at 4.4%, while Wales recorded a more modest increase of 2.7%.
Across England, house prices rose by 3.1% compared to Q4 2024, with a clear north-south divide emerging. Northern England (comprising the North, North West, Yorkshire & The Humber, East Midlands, and West Midlands) continued to outperform southern regions, with a robust 4.9% year-on-year price increase. The North led among English regions, reporting a 5.9% rise.
In contrast, southern England (including the South West, Outer South East, Outer Metropolitan, London, and East Anglia) experienced a 2.2% annual increase. The South West was the best performer in the south with a 2.7% rise, while East Anglia lagged behind with a modest 0.5% growth.
Monthly, house prices grew by 0.7% in December 2024, following a 1.2% rise in November, after accounting for seasonal adjustments.
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Surprising Resilience in 2024
Nationwide’s Chief Economist, Robert Gardner, reflected on the year, highlighting the surprising resilience of the housing market. “At the start of 2024, house prices remained high relative to average earnings, presenting significant affordability challenges for potential buyers. However, the market’s recovery throughout the year has been remarkable,” he said.
Gardner pointed out that higher mortgage rates, hovering around 4.5% for much of the year, posed challenges for buyers, particularly those needing to save for a deposit amidst rising rental costs. Despite these hurdles, housing market activity steadily increased, with mortgage approvals surpassing pre-pandemic levels by year-end.
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Positive Outlook for 2025
April Mortgages Director, Rachael Hunnisett, expressed optimism for early 2025. “The housing market closed 2024 on a positive note, with rising activity and competitive pricing expected to continue into the new year. Recent interest rate cuts have significantly bolstered buyer confidence, paving the way for further market momentum,” she said.
MT Finance Director, Tomer Aboody, echoed this sentiment. “While 2025 might face challenges, particularly with the end of the stamp duty concession in March, another rate cut early in the year could help sustain market activity,” he commented.
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