UK house prices rise 4.7% in December, nearing 2022 record

The Nationwide House Price Index in the UK increased by 4.7% year-on-year in December 2024, the highest growth since October 2022, following a 3.7% rise in November and surpassing the forecast of 3.8%.

UK house prices rise 4.7% in December, nearing 2022 record

Every month, house prices rose by 0.7%, down from November's two-and-a-half-year peak of 1.2% but still significantly above the expected 0.1%. Prices remain just below the all-time high set in summer 2022. Robert Gardner, Chief Economist at Nationwide, noted that upcoming changes to stamp duty are expected to create transaction volatility in early 2025, with an initial surge in activity followed by a slowdown.

UK house prices to grow 2-4% by late 2025: forecast

However, he forecasts a steady economic recovery, easing interest rates and wages outpacing house price growth, which should gradually boost market activity and lead to a 2-4% rise in house prices by late 2025.