The UK housing market is experiencing a resurgence, as evidenced by a
3.3% increase in average house prices reported in November 2024, bringing the average price to £290,000—a £10,000 gain compared to the previous year. Various reports, including data from the Nationwide House Price Index, suggest an even larger yearly increase of approximately
4.7% for the year, indicating the market’s resilience amidst affordability challenges faced by buyers. Key factors behind this recovery include expectations of upcoming interest rate cuts, which are anticipated to alleviate financial pressures on potential homebuyers. Additionally, changes to stamp duty thresholds, set to take effect in April, are expected to spur buyer activity as individuals rush to secure their purchases ahead of potential price hikes. However, economic uncertainties, such as sluggish interest rate reductions due to rising gilt yields and shifting political landscapes in the US, pose risks to buyer confidence. Looking toward 2025, experts are optimistic, predicting that continued economic recovery, coupled with better affordability driven by rate cuts and wage growth, could lead to further demand and price increases in the housing sector.
