“House prices in the UK rose to a record high at the end of 2024.”, — write: epravda.com.ua
House prices in the UK are close to record highs at the end of 2024. Bloomberg writes about this with reference to data from the Nationwide Building Society. Prices rose 0.7% month-on-month to an average of £269,426, just below the record high of £273,751 set in summer 2022. “The rise in prices beat economists’ expectations for a 0.1% monthly rise in prices, adding to evidence that the housing market is immune to a wider slowdown in Britain and interest rates that remain high despite falling by a quarter of a point last year.” – the agency writes.Advertisement: This was the fourth consecutive monthly increase in prices, and it coincides with other data indicating stable demand from buyers, including a jump in mortgage approvals to the highest level in two years. At the same time, prices are rising more rapidly in the north of England than in the south. In London, average prices were virtually unchanged between the second and fourth quarters of last year at just over £525,000. Overall, house prices across Britain ended the year 4.7% above the level seen in December 2023, data from Nationwide showed.Advertisement: The market is supported by rising real incomes and the end of uncertainty surrounding Labour’s first budget on 30 October . Consumers have been left out of most of the £40bn tax hike announced by the Treasury. “Mortgage market activity and house prices proved surprisingly resilient in 2024, given the ongoing affordability challenges facing potential buyers,” said Nationwide Chief Economist Robert Gardner. These challenges are likely to persist into 2025, and the Bank England is expected to provide only limited assistance to potential buyers. Bloomberg Economics projects home prices to rise 4% in 2025, although housing affordability will increase more slowly.