UK House Prices Defy the Odds:
2024’s Unexpected Growth

UK House Prices Defy the Odds: 2024’s Unexpected Growth and Future Projections

As 2024 unfolds, the UK housing market surprises with steady resilience, pushing forward with moderate yet meaningful growth. Amid economic hurdles like tax increases and surging mortgage rates, UK property prices remain strong, even if growth varies widely by region. With future forecasts hinting at dramatic possibilities, understanding today’s market is crucial whether you’re buying, selling, or investing.

What’s Driving UK House Prices?

UK house prices continue a steady climb, reaching an average of £293,000 by August 2024—a 2.8% increase from last year. This stability, bolstered by solid demand and manageable mortgage rates, has created a market that may be slowing but shows no signs of stalling. Experts suggest that this phase could indicate a “new normal” of sustainable growth that could support buyers and investors alike in the long term.

Region by Region: Where Are Prices Climbing Fastest?

Northern Ireland: Breaking Records
Northern Ireland boasts the highest growth in the UK, with a striking 10.2% surge bringing average prices to £204,242. This region’s unique blend of high demand and relatively low average property prices has made it a powerhouse of growth in 2024.

Scotland: Steady Gains on the Rise
Scottish home prices have climbed by 5.4%, reaching an average of £200,000. A thriving economy and demand for spacious, suburban properties are the driving forces behind this consistent rise, which is capturing the attention of those seeking both investment and lifestyle benefits.

Wales: The Allure of Rural and Coastal
With a 3.5% increase and an average price of £223,000, Wales has been powered by a rush toward scenic and serene properties. Demand for rural and coastal homes remains high, driven by urban-to-rural migration and the search for tranquil living.

England: The Mixed Market Leader
England shows the slowest growth rate at 2.3%, with an average house price of £310,000. But the story doesn’t end there. Regions like the Northwest are outperforming, suggesting that England’s market still offers some hidden growth gems.

Market Trends and Resilience in 2024

October’s property data saw prices tick up by 0.2%, marking the fourth month of minor gains. This gradual rise reflects a broader market stabilization. While the pace has slowed, buyers and sellers are adapting to a more stable market, one where rapid increases may be less common. The current trends indicate a durable market, ready to adjust to the economic landscape.

What’s Ahead? Competing Forecasts for the Future

Industry predictions differ, reflecting diverse expectations for the UK’s property future. On one end, Hamptons anticipates a steady 12.5% rise by 2027, citing higher taxes and interest rates as dampening factors. Savills, however, presents a far more optimistic forecast of a 23.4% increase from 2025 to 2029, expecting a nearly 29.4% surge in the Northwest.

Navigating the Market with Mortgage One

In this changing landscape, Mortgage One stands ready to assist buyers, sellers, and investors in making the most of these shifting trends. With expert advice and tailored mortgage solutions, Mortgage One helps you stay ahead of the market, ensuring your property decisions align with the future of UK housing. For personalised mortgage guidance, connect with Mortgage One today.