The UK’s house prices stabilise in December

The average sale price of a home in England and Wales nudged higher in December, increasing by 0.2% to £357,400, research from e.surv reveals.

It says that despite this slight uptick, prices remain around 2% lower than a year ago and 6% below their late-2022 peak.

While the housing market demonstrated resilience last year, regional variations persist.

Northern England saw positive price growth, while southern regions, particularly London and the South East, experienced continued declines.

These disparities are attributed to factors such as affordability pressures and reliance on mortgage finance.

Improving consumer confidence

A director of the firm, Richard Sexton, said: “This year-end performance reflects the stabilising effects of improving consumer confidence and a market that has adjusted to economic challenges.

“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.”

He adds that regional disparities continue to shape the overall picture as annual price falls for England and Wales stand at -2.0%.

However, when London and the South East are excluded, the decline narrows to -1.2%, highlighting contrasting regional market dynamics.

Prospects for the housing market

The house price index also reveals that prospects for the housing market in 2025 appear brighter.

While positive signs of market strengthening are evident across much of England and Wales, regional disparities remain.

Notably, only in Northern England did house prices exhibit positive annual growth in November 2024.

Meanwhile, the market in Middle England and Wales showed mixed results, while prices continued to decline, albeit at a slower pace, in Southern England.

Address affordability challenges

Mr Sexton said: “Looking ahead, attention will turn to the government’s forthcoming long-term housing plan, which is expected to address affordability challenges and increase housing supply.

“While the advent of new stock is still some way off, the very clear direction of travel will give buyers cause for optimism in the longer run.

“The housing market in 2024 demonstrated its resilience, and there is cautious optimism for further stability and growth in the year ahead.”