Data published by Halifax and Bank of Scotland showed that the house price index fell 0.2% m/m in December after rising 1.2% in November (revised from +1.3). Economists had expected prices to rise by 0.8%. This was the second price reduction in 2024. On an annual basis, the house price index rose 3.3%, slowing compared to November (+4.7%, revised from +4.8%). Consensus estimates suggested an increase of 4.6%. Typical property now costs 297,166 pounds.
Northern Ireland continues to record the strongest annual house price growth in the UK - by 7.4% per annum, to 205,895 pounds. House prices in Wales jumped by 4.6% per annum, with properties now costing an average of 226,646 pounds. In Scotland, house prices rose by 2.4% per annum, to 209,959 pounds. The North West remains the region of England with the strongest growth, up by 5.3% per annum, to 238,832 pounds. London continues to have the most expensive property prices in the UK, now averaging 547,614 pounds, up by 3.3% per annum.
"While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement of 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", said Amanda Bryden, Head of Mortgages at Halifax.