Nationwide Confirms Strong Close for UK Housing Market in 2024
UK house prices wrapped up 2024 with a notable 4.7% year-on-year increase, showcasing the resilience of the market despite ongoing challenges. Prices remain slightly below the record high set in summer 2022, according to the latest Nationwide House Price Index.
Regional Insights
Northern Ireland claimed the top spot for regional growth for the second consecutive year, with house prices up 7.1% year-on-year. Scotland followed with a 4.4% increase, while Wales recorded a more modest 2.7% rise.
England saw a 3.1% year-on-year price increase in Q4 2024, with a clear north-south divide in performance. Northern England (including the North, North West, Yorkshire & The Humber, East Midlands, and West Midlands) outperformed southern regions, with an impressive 4.9% annual growth. Among English regions, the North led with a 5.9% increase.
In southern England (covering the South West, Outer South East, Outer Metropolitan, London, and East Anglia), prices rose by 2.2%. The South West emerged as the top-performing southern region with a 2.7% increase, while East Anglia lagged behind with a modest 0.5% rise.
Monthly, house prices increased by 0.7% in December 2024, following a 1.2% rise in November, after seasonal adjustments.
A Resilient Housing Market
Robert Gardner, Nationwide’s Chief Economist, noted that the housing market displayed unexpected resilience in 2024. “Despite affordability challenges stemming from high house price-to-earnings ratios and elevated mortgage rates, the market remained robust. Activity levels grew steadily, and mortgage approvals surpassed pre-pandemic levels by year-end,” he remarked.
Gardner also highlighted how rising rental costs and borrowing challenges impacted buyers’ ability to save for deposits. Nevertheless, the market showed strong momentum, aided by slight interest rate reductions later in the year.
Optimism for Early 2025
Rachael Hunnisett, April Mortgages Director, shared a positive outlook for the new year. “The housing market ended 2024 on a high note, with increased activity and competitive pricing paving the way for continued growth in early 2025. Recent interest rate cuts have significantly boosted buyer confidence, and this momentum is likely to carry forward.”
Tomer Aboody, Director at MT Finance, echoed this sentiment, adding, “While the end of the stamp duty concession in March may temper expectations for 2025, further rate cuts could mitigate the impact and sustain market buoyancy.”
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