UK housing market grew by £22.3bn in 2024

The UK’s housing sector saw a robust resurgence in 2024, growing in value by £22.3 billion, research reveals.

According to property experts Savills, this uplift has propelled the total worth of the UK’s residential sector to £379 billion.

That’s a 6.3% climb from the previous year.

Around 1.1 million homes changed hands, with an average selling price of £343,822.

Housing market size

Lucian Cook, Savills’ head of residential research, said: “Total spending on UK house purchases shifted back into positive territory in 2024 as stability returned to the mortgage markets.

“While the total size of the housing market is below its pandemic peak of £521 billion, it remains £36bn larger than immediately before the pandemic.”

He added: “Further interest rate cuts expected this year will mean that the range of buyers coming to the market will widen, and we can expect to see their spending power pick up over the next 12 months.”

Leap in mortgage borrowing

A big driver of the growth in market value was a £24.3 billion leap in mortgage borrowing, up 18.1% – while cash transactions dropped 5.4% or £8.4 billion.

Equity contributions from borrowers with mortgages grew by £6.3 billion (9.5%), yet the proportion of cash and equity in overall housing expenditure dipped to 58%.

Leading the charge were first-time buyers, who boosted mortgage debt by £12.2 billion, a 21.4% rise, spurred on by increased activity and marginally relaxed loan-to-value ratios.

Regionally, Northern Ireland topped the charts with a 13.4% surge in housing expenditure, though its £5.1 billion market remains a modest 1.4% of the UK total.

Meanwhile, the South East’s housing sector, valued at £74.5 billion, overtook London’s £72.8 billion, which grew by a just 2.3%, marking a notable shift after two years.

First-time buyer rise

Mr Cook said: “The rise in first-time buyers reflects the overwhelming desire of Britons to get a foot on the housing ladder.

“Especially given the lack of choice in the private rented sector, and the double-digit rental growth tenants have experienced over the past few years.”

He adds: “As a result, those who have been able to pull together a deposit have continued to take the plunge, despite higher house prices and mortgage rates.”

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