The Halifax House Price Index in the UK rose 3.3% year-on-year in December 2024, marking the slowest growth in five months, following a downwardly revised 4.7% increase in November.
House prices in UK rise in December
On a monthly basis, house prices fell by 0.2%, the first decline in nine months, after a sharp 1.2% rise in November and against expectations of a 0.8% increase. The average house price dropped to £297,166. While the housing market has recently benefited from falling mortgage rates, income growth, and the announcement of upcoming Stamp Duty policy changes, mortgage affordability remains a challenge for many, particularly as the Bank Rate is expected to decline more gradually than previously forecast.
Buyer demand may remain robust
However, provided employment conditions do not worsen significantly beyond the recent softening, buyer demand is likely to remain relatively robust. Considering these factors, we continue to expect modest house price growth this year," said Amanda Bryden, Head of Mortgages at Halifax.
