Major house price update shared by Halifax after five months of consecutive increases
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House prices saw a slight dip of 0.2% month-on-month in December after a streak of five months of increases, Halifax's index revealed. On an annual scale, property values rose by 3.3%, pushing the average UK house price to £297,166. Amanda Bryden, head of mortgages at Halifax, commented: "Prices fell back slightly in December, by 0.2%, following five consecutive monthly increases.".
She observed that the housing market remained stable early in 2024, with growth in house prices accelerating from summer onwards. The latter part of the year witnessed a response to falling mortgage rates and rising incomes, which eased financial pressures for buyers.
She highlighted the upcoming changes to stamp duty starting April, where the "nil rate" band for first-time buyers will drop from £425,000 to £300,000, spurring potential first-time buyers to advance their home-buying plans. Stamp duty is applicable in England and Northern Ireland.
Looking ahead to 2025, Ms Bryden suggested that "mortgage affordability will remain a challenge for many, especially as the (Bank of England base rate) is likely to come down more slowly than previously predicted.". Nonetheless, if employment conditions don't significantly worsen following a recent softening, buyer demand is expected to stay relatively strong. Considering these factors, Halifax anticipates modest house price growth for the year.
Nathan Emerson, CEO of Propertymark, commented on the market's prospects: "As people start to feel more settled within their financial position, and with an expected rush as many people across England and Northern Ireland provision themselves to navigate stamp duty rises from April, we expect to see an upbeat and confident start to the year.".
