Nationwide has handed customers who have a mortgage a 4.7 per cent boost on their home value. House prices rose for a fourth consecutive month in December, ending 2024 on a “strong footing”, Nationwide said, with the cost of an average home hitting £269,426.
The building society’s monthly tracker found prices in December rose 0.7% on the previous month and were up 4.7% on an annual basis. It means house prices have risen a staggering £12663 year-on-year, according to the building society.
Robert Gardner, Nationwide’s chief economist, said: “Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers. It was encouraging that activity levels in the housing market increased over the course of 2024, with the number of mortgages approved for house purchase each month rising above pre-pandemic levels towards the end of the year.”
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The value of a typical UK home increased by almost £12,000 during 2024, from £257,443 at the end of 2023 to £269,426 at the end of last year. “This will lead to a jump in transactions in the first three months of 2025, especially in March, and a corresponding period of weakness in the following three to six months,” Gardner said.
“This will make it more difficult to discern the underlying strength of the market.” Nathan Emerson, the chief executive of the estate agents’ body Propertymark, said: “Once the dust has settled following the anticipated rush heading towards April, buyers and sellers may reap the rewards of a slower-paced market, which may allow opportunities for greater negotiation on price from both buyers and sellers.”
However, changes to stamp duty in April could also mean the market is “distorted” due to a potential rush to buy before it comes into effect. Hamptons’ forecast continued: “While there might be a slight uptick in transactions just before these changes take effect, the overall impact is not expected to cause a significant rush as the potential savings for most movers will be relatively small.
“Overall, affordability is expected to remain the key determinant of the market’s direction, with incomes set to outpace inflation for the second year running, encouraging those who had been deferring relocation to consider moving.”