15 January 2025
According to today’s House Price Index, UK average house prices rose 3.3% in the year to November 2024. On a seasonally adjusted basis, monthly house prices rose 0.1% in November 2024. The average price of a UK property was valued at £290,000.
Regionally, the North East had the highest annual rise at 5.9%, whereas London was the region which had the lowest level of annual house price inflation contracting by 0.1%.
Stacy Eden, Partner and National Head of Real Estate at leading audit, tax and consulting firm RSM UK, comments: “Property prices are slowly increasing with inflation, slowly falling interest rates and rising consumer income. Looking ahead, we expect to see house prices to continue with a gentle upward trend underpinned by the chronic lack of supply. The housing affordability index over the last couple of years has also fallen from close to 8.5 to just under 7.5, allowing for future house price rises. Concerns about measures announced in the Budget and poor economic growth in 2025 may however mean house prices rise less than expected this year.
“In addition, annual London house price growth was significantly below the national growth rate highlighting how areas with very high house prices are seeing a small correction. London also had a 1% monthly house price fall in November. Since the Budget, the UK has become less attractive for overseas high net worth individuals which is also influencing prices in London. London’s high prices at a nominal level have only grown by 10% since 2016, which compared to 37% nationally further highlights the affordability challenges of living in London.”
He added: “Rental prices are still rising by 9% on a national level, with London seeing double digital increases, highlighting how difficult it is for first time buyers to get on the housing ladder, particularly in the capital. We’ve recently seen the government’s National Policy Planning Framework, which will go some way to revitalise the UK economy by addressing supply and demand challenges and increase the number of affordable homes available.”

