UK house prices rise 4.6 percent in December 2024 to 268,000 pounds amid recovery

In December 2024, the UK housing market showed strong signs of bouncing back, with the Office for National Statistics (ONS) reporting a 4.6 percent yearly jump in average house prices, hitting £268,000. This surge, the fastest in almost two years, outpaced November’s 3.9 percent rise. Falling borrowing costs are fueling this growth, helping buyers while sparking urgency among those aiming to close deals before expected purchase tax hikes later in 2025.

Despite the upbeat national trend, regional differences stand out. London saw no price growth, weighed down by local economic factors and a high supply of properties, even with its global draw. Meanwhile, northeast England topped the charts with a 6.7 percent increase, highlighting stark contrasts across the country.

The rental market mirrors this improving mood. In London, private residential rents rose 11 percent in the year to January 2025, averaging £2,227 monthly—down slightly from December’s 11.5 percent spike but still the UK’s steepest climb. Nationally, private rents increased 8.7 percent from January 2024, averaging £1,332 per month, a modest dip from December’s 9.0 percent growth.

Experts point to lower mortgage rates as a key driver, boosting buyer confidence and demand. Many are rushing to secure cheaper loans before tax changes hit. “Lower interest rates and looming tax increases are sparking a rush of market activity,” noted an analyst from a top property consultancy. Observers see this upswing as part of a wider recovery after economic turbulence.

Government efforts to steady the housing sector are also expected to keep the momentum going. With borrowing costs low and support policies in play, the market looks set for continued strength in the months ahead. Yet, London’s lag signals a need for tailored fixes to address regional quirks.

This housing rebound unfolds against a backdrop of global economic uncertainty, but the latest figures paint an optimistic picture. Buyers are jumping on favorable loan terms, while sellers cash in on rising values. If borrowing costs stay manageable and government support holds firm, the UK housing market could enjoy solid growth through 2025.

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