Property Market Insights: 2024’s Strong Finish

Property market insights reveal that the United Kingdom’s housing market ended 2024 robustly, with a 4.7% annual price increase. This growth pushed the average house price across the country to £269,426, marking a strong year despite economic uncertainties.

Regional Performance: A Varied Picture

The UK’s housing market showcased a diverse regional landscape, with some areas demonstrating exceptional growth while others experienced more modest gains.

Northern Ireland Takes the Lead

Northern Ireland stood out as the frontrunner, achieving an impressive 7.1% increase in property values. This growth highlights the region’s increasing appeal to buyers seeking affordability alongside economic development.

Steady Growth in Northern England

Northern England also saw a strong performance, with property prices rising by 4.9% overall. Within this region, the North itself experienced an even higher growth rate of 5.9%, signalling a thriving housing market in cities and rural areas alike.

Southern England and East Anglia Lag Behind

In Southern England, house price growth was comparatively subdued at 2.2%. East Anglia, in particular, saw the slowest increase in property values, recording just 0.5% growth. While demand in these regions remains steady, high property prices and limited affordability could be key factors influencing the slower growth.

Property Market Insights: Terraced Homes Lead the Way

Different property types also varied significantly in terms of price increases throughout the year.

Terraced Homes in Demand

Terraced houses saw the sharpest rise in prices, climbing by 4.4%. These properties continue to attract buyers due to their balance of affordability, space, and urban proximity, making them a favourite among first-time buyers and young families.

Flats See a Solid Uptick

Flats recorded a 4.0% increase in value. Urban revitalisation efforts and the growing popularity of city living post-pandemic likely contributed to this demand, particularly among young professionals.

Semi-Detached and Detached Homes

Semi-detached houses experienced a 3.4% price increase, reflecting stable demand among families. Detached homes, often the most expensive property type, rose by 3.2%, indicating steady interest from high-income buyers despite affordability challenges.

Key Market Trends Shaping 2024

Several critical trends influenced the housing market dynamics throughout the year, highlighting both opportunities and challenges for buyers, sellers, and investors.

Mortgage Rates Stabilise

The average mortgage rate settled at 4.5% during 2024. While higher than pre-pandemic levels, this figure represents a stabilisation compared to the fluctuations seen in recent years. This consistency gave buyers greater confidence to proceed with property purchases.

Mortgage Approvals Surpass Pre-Pandemic Levels

In a surprising development, mortgage approvals exceeded pre-pandemic figures, reflecting a resilient housing market and renewed buyer activity. This uptick was particularly noticeable in regions offering more affordable housing options.

Rental Growth Poses Challenges

The rental market continued to see record-breaking growth, further exacerbating affordability concerns for first-time buyers. As rents climbed, many prospective homeowners found it increasingly difficult to save for deposits, perpetuating reliance on the rental market.

Looking Ahead: Housing Market Forecast for 2025

As we move into 2025, several factors are expected to shape the trajectory of the UK housing market. While the market remains robust, certain changes could alter buyer and seller behaviours in the months ahead.

Impact of Stamp Duty Revisions

Anticipated changes to stamp duty thresholds could trigger a spike in early-year transactions, as buyers rush to take advantage of potential savings. This could temporarily inflate demand and push prices higher in the short term.

A More Stable Growth Outlook

Experts predict that house prices will stabilise, with growth rates expected to range between 2% and 4%. This moderation will likely be driven by improved affordability, as earnings are expected to rise and interest rates remain stable or decline.

Challenges for First-Time Buyers Persist

While the forecast is generally optimistic, affordability challenges, especially for first-time buyers, remain a concern. Rising rents and the ongoing cost-of-living crisis could dampen aspirations for homeownership among younger buyers.

Final Thoughts: Property Market Insights

The UK housing market’s resilience in 2024 highlights its ability to adapt to economic fluctuations and changing buyer priorities. With regional disparities and diverse trends across property types, it remains a dynamic landscape for investors and homeowners alike.

For further insights and updates on the evolving housing market, stay informed with Red Cardinal Property.