New figures from the Halifax have shown that the average price of a UK home ended 2024 at close to £300,000, a 3.3% increase when compared to the start of the year. Though the average value did dip slightly in December, it now stands at £297,166. This news comes hot on the heels of a report from a rival lender, Nationwide, which stated that the housing market in the UK has been “remarkably resilient” with a 4.7% increase in prices at the end of 2024 when compared to the beginning of the year.
Both lenders have slightly differing criteria when calculating house prices; however, they both use their own mortgage data. The Nationwide believes that the average property price stands at just under £270,000. Neither lender includes cash purchases or buy-to-let deals in their estimates, although cash buyers account for about one-third of housing sales.
According to Amanda Bryden, head of mortgages at the Halifax, upcoming changes to the stamp duty come April should motivate first-time buyers to invest in properties sooner rather than later, although she added that “mortgage affordability will remain a challenge for many.” Alice Haine, an analyst at Bestinvest, commented that the upcoming stamp duty changes will hit first-time buyers hard, as they will need to raise the necessary funds for both a deposit and a higher tax bill.
Housing experts expect a surge in sales over the coming months ahead of stamp duty changes, after which the interest is set to wane. Currently, in England and Northern Ireland, the stamp duty threshold for properties is £250,000, although this is set to drop to £125,000. The stamp duty exemption for first-time buyers will also decrease to £300,000 from £425,000. While there are expectations of reduced interest rates throughout 2025, Bank of England governor Andrew Bailey believes that the uncertainty in the market makes it impossible to predict the extent and frequency of the rate cuts.
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