Experts say “affordability remains an obstacle”
House prices in the UK hit a record high in January. The average cost of a new house is now a whopping £299,138 – 3% higher compared to the beginning of last year.
According to the latest figures from the Halifax House Price Index, published this month, house prices rose by 0.7% in January, pushing the average price of a new home to a new record high. Northern Ireland continues to have the strongest annual price growth in the UK, as prices rose an incredible 7.3% between December 2023 and 2024, with further increases in January bringing the average price to £205,473.
House prices in Wales now cost an average of £227,397, and in Scotland the average in £210,690. In England, the North East has overtaken the North West as the region with the strongest annual property price growth, up 5.2% compared to the previous year, with properties now costing an average £178,696.
Guy Gittins, CEO of Foxtons estate agency, said: “The UK property market has certainly picked up where it left off last year, as the increasing momentum seen across the sales market throughout 2024 has continued to flow into the new year, further cultivating the rate of house price growth seen across the market and pushing the average house price to a record high.
“This has been driven by a degree of added urgency from first-time buyers keen to complete ahead of April’s stamp duty deadline, as well as a greater degree of acceptance from homebuyers of the adjustment to interest rates over time.
“Market activity remains robust and it’s clear that the nation’s buyers and sellers are hitting the ground running this year. In fact, we’ve seen buyer enquiries and viewings numbers remaining consistent with the latter stages of last year. All signs currently point to a prosperous year ahead with respect to property values and those considering a sale in 2025 should be looking to list their home on the market sooner, rather than later.”
Marc von Grundherr, director of Benham and Reeves estate agency, said: “The property market has bounced back following a brief pause for breath over the Christmas period and we’ve already seen an incredibly busy start to the year, with more buyers entering the market and a surge in stock levels as the nation’s sellers look to capitalise on this increase in market activity.
“We’ve also seen lenders move to reduce mortgage rates in anticipation of the interest rate reduction and, whilst affordability remains an obstacle, we expect market activity to only strengthen as buyers benefit from lower borrowing costs.”
