The UK housing market saw annual price growth rise to 3.3% in November 2024, up from 3.0% in October, according to the Office for National Statistics (ONS).
This increase brings the average UK property value to £290,000, reflecting steady market activity amidst ongoing economic challenges.
Regional Breakdown
England: Average house price reached £306,000, marking 3.0% annual growth.
Wales: Properties averaged £219,000, also a 3.0% increase.
Scotland: Growth was more robust at 4.7%, with average prices hitting £195,000.
Northern Ireland: In Q3 2024, average house prices rose by 6.2%, reaching £191,000.
The ONS also reported a slight dip in Consumer Prices Index (CPI) inflation, which eased to 2.5% in December, down from 2.6% in November.
This unexpected decline in inflation has spurred optimism for a potential Bank of England base rate cut in February 2025. Traders responded positively, with government borrowing costs easing and mortgage rate hopes improving.
Experts in the property and finance sectors weighed in on the implications of these developments:
• Guild of Property Professionals: Anticipates a potential rate cut, which could boost market sentiment and ease mortgage costs.
• L&C Mortgages: Notes that inflation easing might stabilise fixed mortgage rates, though uncertainties remain.
• OnTheMarket: Highlights the importance of confidence in maintaining market momentum and advises sellers to price competitively.
• Fine & Country: Expresses cautious optimism for 2025, hoping for further rate reductions to support the housing market.
Private rents also saw a year-on-year increase, albeit at a slower pace.
Average UK private rent rose 9.0% in the 12 months to December 2024, slightly down from 9.1% in November.
The average monthly rent reached £1,327, up £110 compared to the previous year.
Lettings experts predict modest rent growth of 3-5% for 2025 but stress that supply levels will play a crucial role in shaping the rental landscape.
