House prices dropped unexpectedly last month for the first time since March although they finished the year higher than in December 2023.
Figures released this morning from the Mortgage lender Halifax said house prices fell 0.2% in December after a 1.2% rise in November, and were 3.3% higher over the year
Halifax said house prices in the second half of 2024 had been boosted by falls in mortgage rates, ongoing real wage growth and some buyers seeking to purchase ahead of an increase in stamp duty in April 2025.
Amanda Bryden, Head of Mortgages, Halifax, said
“In many areas across the country, house prices were also buoyed by demand outstripping supply, possibly further amplified by homeowners holding off putting their property on the market – perhaps in anticipation of mortgage rates reducing further.
“Where does that leave the housing market for 2025? While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement on upcoming Stamp Duty policy changes, mortgage affordability will remain a challenge for many, especially as the Bank Rate is likely to come down more slowly than previously predicted. However, providing employment conditions don’t deteriorate markedly from a more recent softening, buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year.”
