That’s according to the UK House Price Index, which noted this was a rise of £12,000 on average properties. On a monthly basis, prices dipped marginally by -0.1%.
Regional split
Average house prices in the 12 months to December 2024 increased in England to £291,000 (4.3%), in Wales to £208,000 (3.0%) and in Scotland to £189,000 (6.9%). The average house price increased in the year to Q4 (Oct to Dec) 2024 to £183,000 in Northern Ireland (9.0%).
Of the English regions, annual house price inflation was highest in the North East, where prices increased by 6.7% in the 12 months to December 2024. London was the English region with the lowest annual inflation, where prices were unchanged (0.0%) in the 12 months to December 2024.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “It wasn’t just the advent calendars seeing new doors opened in December, we already knew that sales had risen at a time of year when they’re normally more depressed, and as a result prices were on their way up. Buyers were keen to get sales through ahead of the stamp duty deadline, and mortgage rates had fallen back after the Bank of England cut rates in the summer.
“There are decent signs that January saw more house price rises, but that higher mortgage rates kept a lid on sales – which were flatter. As the end of the stamp duty holiday approaches, we could see things pick up, but the market has to contend with a difficult combination of rising prices and stubbornly high mortgage rates, so buyer enthusiasm may not last.”
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Richard Harrison, head of mortgages at Atom bank, added: “The latest ONS figures underline what a strong year 2024 was for house price growth, with prices rising at their fastest rate since February 2023. Even with the unwelcome news of resurgent inflation, it is unlikely that 2025 will be much different. Recent data out from Rightmove suggests the gap between supply and demand has narrowed, but it’s still there, pushing prices ever higher. Record high house prices have become the norm, and I expect this trend to continue.
“Those hoping to purchase a home will have welcomed the cut to base rate, a move which has already fed through into lower mortgage rates from many lenders. While today’s inflation news may reduce the chance of a cut in March, the expectation of additional cuts to come this year, coupled with the increasing availability of higher LTV mortgages, will be further encouragement for those buyers.”
