UK house prices rose 4.6% last year – where did property prices grow most?

He claims that with a number of lenders decreasing their home mortgage prices in recent days on the back of lower swap rates– there are now some sub-4% offers on offer– other lenders may follow match, which would certainly bring average home mortgage prices down.

As revealing its most recent house cost index today, the ONS also disclosed the price of inflation for the 12 months to January 2025. It claimed rising cost of living increased by 3%, more than analysts’ forecasts of 2.8%.

Amy Reynolds, head of sales at London estate company Antony Roberts, says she had “a lot more candidates in January than in the last quarter of in 2015, a few of whom have discovered themselves in a position to buy because a novice purchaser has actually finished their chain”.

Because October 2022, the tax obligation has just been imposed on homes worth greater than ₤ 250,000, or ₤ 425,000 for newbie customers. Nonetheless, these thresholds will drop back to their initial levels from 1 April this year– ₤ 125,000 for normal customers and ₤ 300,000 for first-time customers.

“With the UK economic situation in a fragile state, we don’t anticipate additional decrease in the Financial institution rate in the very first half of the year– if anything, we could see set mortgage rates border higher, which will have an unfavorable bearing on activity.”

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Jason Tebb, head of state of OnTheMarket, a residential or commercial property site, commented: “With rising cost of living rising unexpectedly to 3%, the following price reduction might be pressed back a little as the Bank of England keeps a close eye on inflationary stress in coming months.”

He included: “With yearly development holding solid and the Financial institution of England’s current price cut fuelling demand, there is a real feeling that market activity is ramping up. Therefore, purchasers and capitalists are showing renewed confidence, and market energy is developing.”

The ONS additionally divides its data down by English area. It found that the North East had the greatest house rate inflation in the twelve month to December 2024, at 6.7%. This was up from 6.4% in the twelve month to November 2024.