UK house prices rose by 4.7% in 2024, says Nationwide
Published On Jan 2, 2025, 2:26 AM
UK house prices increased by 4.7% in 2024, with the average home costing £269,426. Despite challenges in affordability, the housing market has remained resilient. Terraced homes saw the most significant price increases, particularly in Northern Ireland and northern England. Predictions for 2025 suggest a rise in property sales due to stamp duty changes, although uncertainty around interest rates persists. Experts expect a 10% increase in mortgage lending for house purchases, but challenges in housing affordability may continue beyond 2026.
Stock Forecasts
ITB
Positive
The increase in house prices for 2024 indicates a recovery in the UK housing market, propelled by factors like improved mortgage conditions and upcoming stamp duty adjustments. Such a resilient market is encouraging for construction and real estate-related investments. However, looming uncertainties regarding mortgage rates and housing affordability could temper immediate growth prospects.
XHB
Positive
The forecasted increase in mortgage lending suggests a favorable environment for housing market-related ETFs. Investments in ETFs that focus on homebuilders or real estate may benefit from the anticipated rise in property transactions.
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