The UK housing market saw steady growth in 2024, with house prices increasing by 4.6% in the year leading up to December 2024, according to the latest UK House Price Index. This pushed the average property value to £268,000, marking a rise from November’s revised 3.9% growth. Despite this annual increase, prices saw a slight 0.1% monthly decline between November and December 2024.
Annual and Monthly House Price Trends
While the annual growth rate improved, the 0.1% month-on-month decline in December was relatively mild compared to the 0.8% drop seen in the same period in 2023. The data is based on completed housing transactions, which typically take six to eight weeks to finalize after a purchase is agreed upon.
Key takeaways from the report include:
- Annual house price growth: 4.6% in December 2024 (up from 3.9% in November).
- Average UK house price: £268,000 in December 2024.
- Monthly price change: A 0.1% decrease from November to December.
Regional House Price Trends
Regions with Strongest Price Growth
- North East England led with a 6.7% annual increase, making it the best-performing region in England.
- The East of England and South East saw the highest monthly price rise of 0.6%.
Regions with the Weakest Price Growth
- Yorkshire and the Humber saw the steepest monthly decline, with prices dropping by 0.8% in December.
- London’s housing market remained flat, recording 0% annual growth, keeping the average house price at £549,000.
- London also experienced a 0.3% monthly decrease in December.
Despite these variations, eight out of nine regions in England recorded positive annual price growth, reflecting a generally strong housing market.
England’s Housing Market Performance
Across England, house prices remained stable on a monthly basis in December. However, on an annual scale, property values increased by 4.3%, bringing the average house price to £291,000.
Regional Property Prices in December 2024
- North East: £161,000 (lowest in England)
- London: £549,000 (highest in England)
- East of England: £340,000
- South East: £384,000
- North West: £211,000
- Yorkshire and the Humber: £204,000
Property Transactions See Strong Growth
The UK property market remained active, with 96,000 residential sales valued at £40,000 or more in December 2024. This represents an 18.7% increase from the same period in 2023.
Key Transaction Highlights
- Monthly growth: Transactions increased 2.9% from November to December 2024 (seasonally adjusted).
- Annual growth: Sales volumes were up 18.7% compared to December 2023.
This strong transaction growth suggests that, despite regional variations, the overall market remains resilient and in demand.
The UK housing market ended 2024 on a strong note, with house prices rising 4.6% year-on-year, reaching an average of £268,000. While London’s housing market remained stagnant, regions like the North East and the East of England saw significant growth.
Although there was a slight 0.1% monthly decline in December, property transactions remained strong, with sales increasing by 18.7% compared to 2023. As 2025 unfolds, market trends will depend on factors such as interest rates, buyer demand, and economic conditions.