- In December, house prices were up 0.7% in a month and 4.7% in a year.
- The average house price was £269,426 – just fractionally below the record highs hit during the pandemic.
Nationwide has released its house price index for December: Strong end to the year for UK house prices
Sarah Coles, head of personal finance, Hargreaves Lansdown:
“December typically sees a pause in the property market, when hitting the streets for quality properties makes way for hitting the Quality Streets for the purple ones. However, like a salad or a spin class, property price rises made an unusual appearance in December, as the looming end of the stamp duty holiday persuaded people to leave the sofa for a spot of house hunting.
The start of 2025 is likely to feel the impact of the tax break too, and buyers will be keen to rush sales through while there’s a decent chunk of tax to be saved. However, as time goes on, affordability threatens to keep a lid on both sales and prices. Prices are edging even closer to a record high, and with the average 2-year fixed rate mortgage sticking around the 5.5% mark, it means a real stretch for buyers.
At a time when affordability is under so much pressure, your deposit will make a key difference, so it pays to consider whether there’s any way you can boost it. It’s worth talking to family, especially if they’re considering making gifts in order to deal with an inheritance tax threat. If you already have a Lifetime ISA, topping up with up to £4,000 this tax year will boost it by £5,000. If you don’t yet have one, you’re aged 18-39, and have at least a year until you plan to buy, you can open one now and cash in on the government bonus.
