Annual house price growth reached 4.7% across the UK in 2024 – up from 3.7% in the year to November, Nationwide’s House Price Index has revealed.
Northern England and the Midlands outperformed the South, with price growth of 4.9% compared to 2.2%.
However it was Northern Ireland that saw the highest house price growth, at 7.1%, while Scotland also house price growth of 4.4%.
Tomer Aboody, director of specialist lender MT Finance, said: “As 2024 came to a close, sentiment remained pretty strong.
“We have seen an increase in prices year-on-year, mostly due to the rate cuts which have made affordability easier and in turn, have brought more buyers and sellers back into the fold. Higher transaction levels have also made the market more buoyant.
“With the stamp duty concession ending in March, 2025 as a whole might not be as positive as everyone hopes but another rate cut early in the year could help ease any pain.”
At the other end of the spectrum East Anglia was the weakest performer, at 0.5%, followed by London, at 2.0%.
UK house price growth of 4.7% was far higher than most commentators predicted at the start of 2024.
Iain McKenzie, chief executive of The Guild of Property Professionals, said: “The end of 2024 has looked very different to how the year started, with many forecasts predicting that house prices would be in negative territory. However, the market showed resilience despite headwinds such as political uncertainty, and house prices have edged up.
“The first quarter of 2025 should see an increase in market activity, as many potential buyers would want to try get their transaction over the line before the Stamp Duty changes come into play at the start of April. The increase in demand should underpin house prices during the first quarter.
“While this year is starting on a more positive foot than 2024, it will be interesting to see whether the Stamp Duty changes do dampen the market to some degree. Aspects such as further anticipated rate cuts should mitigate the impact, along with the economy’s continued recovery and earnings growth.”
