The UK housing market is set to close 2024 with its strongest end-of-year performance in four years, with 283,000 sales progressing into 2025.
Valued at £104bn, this marks a 30% increase in the sales pipeline compared to December 2023, according to the latest House Price Index from Zoopla.
Average house prices have returned to growth, with a 1.9% increase over the past 12 months.
The average UK home now costs £267,500, with Northern Ireland leading regional growth at 6.8%, compared to just 0.7% in the South East.
Despite rising sales, buyers have become more price-sensitive amid higher mortgage rates and economic uncertainty following the autumn budget.
In November 2024, buyers were paying 3.6% below asking prices, compared to 3.2% during the summer.
Richard Donnell, executive director at Zoopla, said: “Buyers and sellers returned to the housing market in 2024 having delayed moves in the face of higher mortgage rates. There is a sizable pipeline of sales that will complete in the first half of 2025 with many hoping to avoid higher stamp duty costs from next April.
“More sales have supported a return to house price growth across the country but home buyers have become more price-sensitive in recent weeks as mortgage rates drift higher.
“Affordability constraints will keep the pace of house price growth in check over 2025, but there will be enough price inflation to support 5% more home moves.”
Zoopla forecasts that UK house prices will rise by 2.5% in 2025, with transactions expected to total 1.15 million, up from 1.1 million in 2024.
The north-south divide in house price growth is expected to persist, driven by affordability.
House prices in London have risen by 83% since 2010, compared to 19% in Northern Ireland and 30% in Scotland, leaving more room for growth in northern regions and devolved nations.
Malcolm Prescott, managing director of Devon-based Webbers, highlighted regional resilience. “Zoopla’s latest House Price Index reveals a 1.9% year-on-year growth, and here in the South West, we can report that individual homes have performed a little better.
“Buyers now have greater choice, with a 30% increase in available stock compared to last year.”
Nathan Emerson, CEO of Propertymark, added: “When you compare how the housing market entered 2024 to where we stand heading into 2025, it’s an incredible journey.
“Consumer confidence and affordability have grown consistently across the year.
“We are expecting a busier than normal first quarter, especially in England and Northern Ireland, as people look to complete purchases before the proposed stamp duty thresholds change in April.”
