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UK Housing Market Update: December 2024
Posted at 1.08pm 13th December 2024 by Oliver Gill - 2 mins read
The UK housing market in December 2024 presents a mixed but evolving picture as we near the year’s end. Key trends have shaped the market, influenced by economic changes, regional disparities, and government policies. Here’s a detailed overview:
Stabilisation in House Prices
Nationally, house prices have shown modest growth. Halifax reports a 1.1% annual increase, while Nationwide indicates a 0.6% rise. This follows a period of volatility, suggesting a more predictable market environment. However, regional variations persist; for instance, areas in London like Southwark have seen slight declines, whereas regions such as Kensington and Chelsea show growth, driven by localised demand and development.
Rental Market Dynamics
While rental prices have grown slower than in previous years, affordability remains a significant concern. Cities like London and Manchester still face high rental costs, with demand outpacing wage growth. These trends highlight the ongoing challenge for renters and underscore the importance of affordable housing initiatives.
Economic Factors at Play
Key economic indicators, including inflation rates falling below 4% and improved mortgage approval rates, have bolstered buyer confidence. Lower interest rates are expected to enhance affordability, potentially driving demand. However, concerns about affordability and housing supply persist as major hurdles for sustainable growth.
Looking Ahead
Government policies aimed at increasing housing supply and affordability are expected to play a vital role in 2025. The continued stabilisation of the market depends on economic resilience, consumer confidence, and the effectiveness of these interventions. With shifts in buyer preferences post-pandemic, regions with strong transport links and amenities are likely to experience higher demand.
For sellers, the current market provides opportunities to leverage stable demand, especially in regions where growth is driven by local factors. For buyers, it’s essential to stay informed about interest rate changes and regional price trends when making decisions.
This evolving landscape underscores the importance of both buyers and sellers working with experienced professionals to navigate market complexities effectively.