Average house prices ended 2024 up by 4.6%, according to early estimates from the Land Registry.
The latest Land Registry House Price Index for December 2024 shows average property values rose by £12,000 across the year.
This put the average price of a UK property at £268,087
The figure was down by 0.1% on a monthly basis though.
It has also been reduced due to changes in the Land Registry’s methodology.
Annual price growth was highest in the North East, where prices increased by 6.7% in the 12 months to December 2024 on average.
London was the English region with the lowest annual inflation, where prices were flat across the year.
The prices may seem historic now but give an indication of the whole market with cash and mortgaged deals unlike other indices.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “This survey is the most comprehensive of all the market house-price indices, covering not just mortgaged properties but the 40% or so of transactions which are arranged without finance.
“It may be a little dated but shows that the housing market was considerably resilient at the end of last year. This is despite buyers and sellers coming to terms with the market realities of slower-than-previously-expected falls in borrowing costs.
“Looking forward, we are not seeing or likely to see any great changes in pricing or renegotiation but with inflation edging upwards, the further rate cuts which would greatly assist activity and buyer and seller confidence may be delayed for now.”
Jason Tebb, president of OnTheMarket, added “Two interest rate cuts in the latter half of last year and one this month have had a positive knock-on effect on confidence, which the market relies so heavily on. With inflation rising unexpectedly to 3 per cent, the next rate reduction may be pushed back a little as the Bank of England keeps a close eye on inflationary pressures in coming months.
“Affordability remains a challenge but with a number of lenders reducing their mortgage pricing in recent days on the back of lower Swap rates, this may continue to ease if other lenders follow suit. As always, sellers coming to market would be wise to take advice from their local agent and price accordingly.”
Iain McKenzie, chief executive of The Guild of Property Professionals, suggested property prices have been bolstered by the rush to complete before the Stamp Duty changes come into effect.
He said: However, as many realise that their transactions will not make it across the line before the looming deadline, some wind has been taken out of the sails.
“Perhaps spurred on by the rush of buyer activity created by the Stamp Duty deadline, many sellers have placed their properties on the market at the beginning of the year. Currently the number of properties available are at the highest they have been in a decade. Compared to this time last year, there are 13% more new sellers coming to market.
“With more available choice and moderating prices, it would seem that buyers are in the driving seat. However, the recent base rate reduction, coupled with further expected declines this year, has driven buyer demand higher than this time last year, along with an increase in agreed sales. Thus, helping maintain a healthy balance in pricing. While a slight adjustment may occur after April, no significant drop-in market activity is expected.”
But Richard Donnell, executive director at Zoopla was more cautious.
He said: “We expect the rate of growth to slow over 2025 due to much greater choice of homes for sale, up 11% on last year and higher stamp duty costs for most buyers from April. While the rate of inflation has increased, we don’t expect much change in average mortgage rates.
“Additionally, it’s positive that average earnings continue to rise faster than house prices, helping to reset housing affordability and improve access to the market.”
Source: Estate Agent Today