The housing market in England and Wales showed signs of recovery in December, with average house prices increasing slightly by 0.2%, reaching £357,365.
While prices remain 2% below their December 2023 levels and 6% below their late-2022 peak, market sentiment is improving, driven by consumer confidence and steady transaction volumes.
Richard Sexton, director at e.surv, said: “Our data shows house prices in England and Wales closed the year at £357,400, representing a modest month-on-month increase of 0.2%.
“While values remain approximately 2% lower than a year ago and 6% below their late-2022 peak, the broader picture is one of a market exceeding expectations in terms of activity, mortgage lending, and transaction volumes.”
The slight rise in prices reflects stabilisation in the market following a year marked by economic pressures.
The Chancellor’s announcement on Stamp Duty changes, due to come into effect in April 2025, is expected to encourage a surge in activity in the first quarter as buyers move to avoid additional costs.
Sexton added: “The Chancellor’s announcement on Stamp Duty changes is anticipated to drive a busier start to 2025, as buyers bring forward purchases to avoid the additional SDLT charges from April.”
Regional disparities remain evident, with northern regions showing positive growth while southern England continues to experience annual price falls. Excluding London and the South East, the annual price drop narrows to 1.2%, highlighting the contrasting dynamics across the country. “Annual price falls for England and Wales stands at -2.0%, but when London and the South East are excluded, the decline narrows to -1.2%, highlighting contrasting regional market dynamics,” Sexton said.
Despite continued affordability pressures, there is cautious optimism for further stability and growth in 2025. Expectations are bolstered by the Government’s long-term housing plan, expected mid-year, which aims to address affordability and increase housing supply.
Sexton concluded: “The housing market in 2024 demonstrated its resilience, and there is cautious optimism for further stability and growth in the year ahead.”
