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House prices dipped by 0.2% month-on-month on common in December following 5 months in a row of rises, based on an index.
On an annual foundation, property costs elevated by 3.3% usually, taking the typical UK home worth to £297,166, Halifax mentioned.
Amanda Bryden, head of mortgages, Halifax, mentioned: “Prices fell again barely in December, by 0.2%, following 5 consecutive month-to-month will increase.
“The housing market was broadly regular at first of 2024, with home worth progress taking off from the summer time onwards. In the latter half of the 12 months, home costs grew in response to the falls in mortgage charges, alongside revenue progress, each resulting in monetary pressures considerably easing for consumers.”
She mentioned adjustments to stamp obligation from April, which is able to see the “nil fee” band for first-time consumers shrink from £425,000 to £300,000, have given potential first-time consumers extra motivation to get on the housing ladder and convey any home-buying plans ahead. Stamp obligation applies in England and Northern Ireland.
Ms Bryden mentioned that, seeking to 2025, “mortgage affordability will stay a problem for a lot of, particularly because the (Bank of England base fee) is more likely to come down extra slowly than beforehand predicted.
“However, offering employment situations don’t deteriorate markedly from a newer softening, purchaser demand ought to maintain up comparatively effectively and, taking all this under consideration, we’re persevering with to anticipate modest home worth progress this 12 months.”
The present fee of home worth progress will come beneath extra stress as increased borrowing prices triggered by the Budget begin to chew
Tom Bill, Knight Frank
Nathan Emerson, CEO of property professionals’ physique Propertymark, mentioned: “As individuals begin to really feel extra settled inside their monetary place, and with an anticipated rush as many individuals throughout England and Northern Ireland provision themselves to navigate stamp obligation rises from April, we anticipate to see an upbeat and assured begin to the 12 months.”
Mark Harris, chief govt of mortgage dealer SPF Private Clients, mentioned: “With HSBC, Halifax and Leeds Building Society amongst these lenders decreasing a few of their mortgage charges this month, the brand new 12 months has obtained off to an encouraging begin. Borrowers shall be hoping that different lenders comply with swimsuit and that the Bank of England delivers additional fee reductions, serving to ease affordability considerations.”
Iain McKenzie, CEO of the Guild of Property Professionals, mentioned: “We may see demand mood after the stamp obligation adjustments, nevertheless, the anticipated fee cuts ought to play an element in growing sentiment out there, bringing down mortgage charges and attractive extra exercise.”
Karen Noye, a mortgage professional at Quilter, mentioned: “First-time consumers are a vital aspect of the housing market however piling on extra affordability pressures, at a time when buying a primary house is already extraordinarily tough, means we may see a discount in such purchases.
Two rate of interest cuts in 2024 haven’t fully eased the mortgage distress for a lot of debtors
Alice Haine, Bestinvest by Evelyn Partners
“This wouldn’t solely be disappointing information for individuals who had hoped to take that first step however it will additionally seemingly ripple throughout the market and we may see a ‘gluing up’ impact if chains stall and transactions gradual because of this.”
Matt Thompson, head of gross sales at London-based property agent Chestertons, mentioned: “December 2024 was one of many busiest Decembers in years when it comes to purchaser demand.
“This was pushed by first-time consumers who had been eager to get on the property ladder earlier than this 12 months’s adjustments to stamp obligation but in addition by second-steppers, together with younger households, eager to upsize.”
Alice Haine, private finance analyst at Bestinvest by Evelyn Partners, mentioned: “Two rate of interest cuts in 2024 haven’t fully eased the mortgage distress for a lot of debtors.
“While common two and five-year mortgage charges did finish the 12 months decrease than they began it, a better inflation studying in December may end in a doubtlessly slower tempo of fee reductions in 2025. It means mortgage charges is probably not heading downwards as quick as many debtors would really like.”
Tom Bill, head of UK residential analysis at Knight Frank, mentioned: “The present fee of home worth progress will come beneath extra stress as increased borrowing prices triggered by the Budget begin to chew. Numerous consumers are nonetheless sitting on sub-4% mortgage provides made earlier than October, which has supported demand in current months.”
Marc von Grundherr, director of London property brokers Benham and Reeves, mentioned: “Of course, affordability stays a large impediment for immediately’s consumers, however the market resilience seen all through 2024 has offered a really sturdy basis for 2025 and it’s broadly predicted that home costs are solely going to go a method and that’s up.”
Here are common home costs adopted by the annual will increase, based on Halifax. The regional annual change figures are based mostly on the latest three months of permitted mortgage transaction knowledge.
East Midlands, £244,274, 3.7%
Eastern England, £336,426, 3.1%
London, £547,614, 3.3%
North East, £176,454, 4.6%
North West, £238,832, 5.3%
Northern Ireland, £205,895, 7.4%
Scotland, £209,959, 2.4%
South East, £389,431, 3.1%
South West, £305,326, 3.8%
Wales, £226,646, 4.6%
West Midlands, £259,365, 4.5%
Yorkshire and the Humber, £213,226, 4.0%
