(qlmbusinessnews.com . Mon 6th Jan, 2025) London, UK —

Northern Ireland Leads as UK Property Market Sees Resilient Growth in 2024

UK house prices concluded 2024 with a 4.7% increase compared to the start of the year, according to data from Nationwide. Despite challenges surrounding affordability, the housing market showed “remarkable resilience,” the nation’s largest building society reported.

At the end of December, the average property price stood at £269,426. While this reflects growth over the year, it remains below the record high of £273,751 set during the summer of 2022.

Nationwide highlighted that terraced homes saw the fastest price growth, with Northern Ireland leading the regional charts for the highest increases. Housing prices in northern England also outpaced those in the south, although all regions reported year-on-year growth.

What 2025 Holds for UK Homebuyers: Stamp Duty Changes and Market Predictions

Market Outlook for 2025.

The coming year poses uncertainties, particularly with potential interest rate changes and upcoming revisions to stamp duty in April. Buyers in England and Northern Ireland will need to pay stamp duty on homes valued above £125,000, down from the current £250,000 threshold. Similarly, first-time buyers’ stamp duty exemptions will drop from £425,000 to £300,000.

Experts predict a flurry of activity ahead of these changes, followed by a slowdown. However, there is optimism regarding interest rates, with expectations that the Bank of England might begin reducing them as early as February, potentially easing the cost of fixed mortgage deals.

Robert Gardner, Nationwide’s chief economist, noted that while prices remain high compared to average earnings, rising rents have further hindered the ability of first-time buyers to save deposits.

Holly Tomlinson, a financial planner at Quilter, warned that changes to stamp duty will add financial strain for those looking to enter the property market.

Long-Term Projections.

While some predict falling mortgage rates and wage growth could improve affordability, others remain cautious. UK Finance forecasts a 10% increase in mortgage lending in 2025, but some analysts view this as overly optimistic.

The Bank of England estimates that nearly 4.4 million mortgage holders will face higher repayments by 2027 as fixed-rate deals expire. Typical households could see their monthly payments rise by approximately £146.

Nationwide’s data reflects its own mortgage lending and does not account for cash buyers or buy-to-let purchases, which together comprise about a third of all property transactions. Rival lender Halifax is set to release its annual data soon, which may provide further insights into the evolving market.

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