After falling in 2023, house prices performed much better in 2024, despite higher interest and mortgage rates providing would-be buyers with affordability challenges. Nationwide building society reports that average UK house prices rose by 4.7 per cent in 2024, although the official figure from HM Land Registry won’t be published until February (its latest figures show 3.4 per cent growth on an annual basis in October).

Nationwide reports that the regional picture was quite mixed, with the biggest increase in Northern Ireland (7.1 per cent) while more expensive areas saw slower growth such as London (2 per cent) and the southeast (2.3 per cent). Halifax’s report for the year also showed that the areas with the biggest growth were mostly towns with lower house prices such as Stoke-on-Trent (17 per cent growth), Slough and Oldham (both 15 per cent), where affordability is less of an issue.

But what of this year? With the stamp duty concession coming to an end in March, estate agents expect buyers to bring forward purchases to avoid the extra tax. From 1 April, stamp duty will be payable at £300,000 (currently £425,000) for first-time buyers in England and Northern Ireland. Non-first-time buyers will pay tax from £125,000 (currently £250,000).

This is expected to boost transactions in the first quarter of the year, followed by a quieter-than-usual second and third quarters, as was the case after previous stamp duty holidays ended.

Halifax still expects buyer demand to hold up relatively well even once the stamp duty concession has ended, resulting in modest house-price growth of up to 3 per cent in 2025, providing employment conditions don’t deteriorate significantly. Property portal Rightmove expects average asking prices to rise by 4 per cent this year, while estate agent Savills predicts a 4 per cent rise in actual prices and Knight Frank a lower 2.5 per cent.

House price predictions 2025
  • Nationwide 2 to 4%
  • Halifax up to 3%
  • Rightmove 4%
  • Savills 4%
  • Knight Frank 2.5%