House Prices In UK According To The Halifax - Fixed Mortgages Get Looking

11th January 2025

"UK house prices finished 2024 up +3.3% over the year, with the average house price £297,166. Prices fell back slightly in December, by -0.2%, following five consecutive monthly increases.

Amanda Bryden, Head of Mortgages, Halifax, said, "The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards. In the latter half of the year, house prices grew in response to the falls in mortgage rates, alongside income growth, both leading to financial pressures somewhat easing for buyers.

Impending changes to Stamp Duty thresholds have also given prospective first-time buyers even greater motivation to get on the housing ladder and bring any home-buying plans forward. Together, these elements meant mortgage demand picked up, hitting the highest level in over two years and back to levels seen pre-pandemic.

"In many areas across the country, house prices were also buoyed by demand outstripping supply, possibly further amplified by homeowners holding off putting their property on the market - perhaps in anticipation of mortgage rates reducing further.

"Where does that leave the housing market for 2025? While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement on upcoming Stamp Duty policy changes, mortgage affordability will remain a challenge for many, especially as the Bank Rate is likely to come down more slowly than previously predicted.

However, providing employment conditions don't deteriorate markedly from a more recent softening, buyer demand should hold up relatively well and, taking all this into account, we're continuing to anticipate modest house price growth this year."

Meanwhile Fixed Mortgages For Many Are Coming to an end
So where to go -
Money facs from comparethemarket.co.uk suggests -

Higher LTV mortgage deals
House prices rose 3.3% throughout 2024, according to the Halifax House Price Index that was published this week. With the average house price now at £297,166, it's a good idea for borrowers to compare mortgage deals and seek advice from a broker, to make sure they find the best mortgage for their situation at the lowest rate.

While the very lowest mortgage rates are reserved for those who have a large amount of equity in their home, there are still some competitive options for those who need to finance a larger proportion of their property. For example, a deal from Yorkshire Building Society offers the lowest two-year fix for remortgage borrowers at 4.30% (APRC: 7.1%), fixed until 30 April 2027, that can finance up to 75% loan-to-value (LTV). Charging a product fee of £995, this deal comes with the perks of a free valuation and free legal fees and is available across Great Britain and Northern Ireland.