The UK housing market has navigated a year of transformation in 2024, proving its ability to adapt to evolving challenges and opportunities. While higher interest rates and shifting economic landscapes have tested the sector, the market has maintained stability. At the heart of this resilience lies a story of regional diversity, where local dynamics and buyer preferences have played a pivotal role in shaping outcomes. As we turn toward 2025, understanding these trends is key for anyone looking to buy, sell, or invest in property.
Have UK House Prices Gone Up in 2024?
Yes, house prices have increased, though the growth has been slower than in previous years. According to Zoopla, the average UK house price stands at £267,200, reflecting a modest 1.5% annual increase as of October 2024. This growth follows a period of adjustment after the rapid rise of 2021-2022.
Regional Highlights: Northern Ireland leads with an annual growth rate of 6.3%, while the North West saw prices rise by 2.9%.
Southern Declines: In contrast, areas in the South East, such as Ipswich and Truro, have experienced slight price declines. The South East has generally seen slower growth due to affordability constraints.
This regional divergence highlights a key trend in the current market: affordability and local economic factors play a significant role in shaping price growth.
Key Trends Driving the Market
1. Affordability Boosted by Falling Mortgage Rates
A decline in mortgage rates toward the end of 2024 has provided relief to buyers. After the sharp increases in borrowing costs in 2023, more stable rates have improved affordability, particularly in regions where property prices are already relatively low.
2. Shifting Buyer Preferences
Demand for suburban and rural properties continues to outpace interest in urban centres. Buyers prioritise space, gardens, and access to green areas—trends driven by the post-pandemic lifestyle shift.
3. Regional Disparities
Affordability remains a significant driver of regional trends. Northern regions and the Midlands continue to outperform the South, benefiting from a combination of lower property prices and robust demand. This trend is evident in areas like Kettering and Rushden, where local markets remain buoyant.
Housing Market Predictions for 2025
The outlook for 2025 suggests a stable market with modest growth driven by continued demand and economic recovery. According to Savills:
National Price Growth: UK house prices are expected to rise by around 2.5% in 2025, with regional differences playing a significant role.
Stronger Growth in Northern Regions: Areas like the North West, Scotland, and Wales will likely see the most significant gains due to affordability and sustained demand.
Transaction Volumes Increase: Housing transactions are projected to grow by 5%, with around 1.15 million sales expected in 2025.
Spotlight on Kettering and Rushden: Local Market Insights
In local markets like Kettering and Rushden, trends mirror national patterns. As leading estate agents in these areas, we’ve observed:
Kettering: Known for its strong transport links and relative affordability, Kettering remains a popular choice for families and professionals. Properties in this area attract steady demand, with a mix of period homes and modern developments providing options for a range of buyers.
Rushden: With its family-friendly amenities, affordable house prices, and ongoing local developments, Rushden continues to appeal to first-time buyers and investors. The town’s proximity to larger cities and green spaces makes it an attractive option for those seeking a balance of affordability and lifestyle.
Advice for Buyers and Sellers
For Buyers
With affordability improving and mortgage rates stabilising, now is a favourable time to explore the market. Focus on properties that align with long-term goals and consider the potential value of energy-efficient homes, which are increasingly in demand.
For Sellers
Competitive pricing is essential to attract buyers in a market characterised by regional variations. Highlighting key features like energy efficiency or recent upgrades can boost your property’s appeal. Working with experienced local estate agents ensures your property reaches the right audience.
What’s Next?
The UK housing market in 2024 has shown resilience amid economic challenges. 2025 is expected to bring steady growth, with price increases projected at around 2.5% and transaction volumes rising.
The outlook remains strong for local markets like Kettering and Rushden, with continued interest from families, professionals, and investors. Whether buying or selling, partnering with knowledgeable estate agents can help you navigate this dynamic landscape and achieve your property goals. Contact Prime Choice today for expert advice or a free property appraisal. With over 30 years of experience in Northamptonshire’s property market, we’re here to support you every step of the way.
