UK House Prices See First Drop in December

UK house prices experienced a minor decrease of 0.2% in December, marking the first monthly drop after five months of consecutive rises, as reported by Halifax. Despite this, the annual growth rate was 3.3%, with the average house price reaching £297,166. The December dip is attributed to easing mortgage rates, rising incomes, and reduced inflation pressures, which had bolstered housing demand earlier in 2024. Changes in stamp duty, effective April, are prompting first-time buyers to expedite their purchases, although mortgage affordability remains a concern for 2025 due to slower than anticipated reductions in the Bank of England base rate. Regional disparities were noted, with Northern Ireland seeing the highest annual growth at 7.4%, while London maintained the highest average house price. Experts suggest that despite challenges, a stable employment market could sustain buyer demand through 2025.