Will house prices rise or fall in 2025? We reveal nine forecasts that matter - and they ALL predict growth
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House prices have once again defied expectations in 2024, as they did in 2023. Higher mortgage rates and high inflation had many speculating at the start of the year that house prices would fall. Instead, they have risen - and substantially. The price of the typical home increased by around £10,000 in the year to October, according to the latest figures from the Office for National Statistics.
![[Going up: Nationwide is forecasting house prices will rise by between 2% to 4% in 2025. Prices have increased 3.7% over the last 12 months]](https://i.dailymail.co.uk/1s/2024/12/19/17/93120153-14210965-Going_up_Nationwide_is_forecasting_house_prices_will_rise_by_bet-a-1_1734628709281.jpg)
The average home sold for around £292,000 in October - which is an increase of 3.4 per cent on the same time last year when the average property was selling for £282,000. The ONS figures run on a delay compared to other house price indexes, but are considered more accurate because they are based on completed sales. But other indexes also paint a similar picture.
Annually, house prices are up 4.8 per cent, according to Halifax - or £14,468 - the strongest level since November 2022. On a year-on-year basis, Nationwide says house prices were up 3.7 per cent - the biggest annual rise in two years. Zoopla paints the least rosy picture. The property portal said house prices went up by 1.5 per cent over the past year.
Boom or bust: We look at what could decide where house prices go in the year to come. We also show what was predicted for 2023 & 2024, and if those were right. While house prices have edged higher this year, the number of sales going ahead has surged compared to 2023.
![[House prices are projected to increase by 2.5 per cent over 2025, according to Zoopla]](https://i.dailymail.co.uk/1s/2024/12/20/14/93270957-14210965-House_prices_are_projected_to_increase_by_2_5_per_cent_over_2025-a-1_1734703327838.jpg)
As of October, property transactions were up 21 per cent compared to the previous year, according to HMRC figures. More recent data from Rightmove, showed the number of sales agreed up by 22 per cent, and new buyer enquiries is up by 13 per cent year-on-year.
