UK house prices finished 2024 up 3.3% over the year, with the average property value falling slightly in December, according to a major mortgage lender.
The average house cost £297,166, down by 0.2% in December from November, following five consecutive monthly increases, according to Halifax. The annual rate slowed from 4.7% in November.
Northern Ireland showed the strongest annual house price growth in the UK, up 7.4%, to an average of £205,895.
House prices in Wales were up 4.6% year on year, with properties costing £226,646, on average. In Scotland, the annual rate was lower than in the rest of the UK, 2.4% to an average £209,959.
London retains the highest average house price across the country, at £547,614, up 3.3% year on year.
Despite the slowdown, Matt Thompson, the head of sales at the estate agent Chestertons, said: "December 2024 was one of the busiest Decembers in years in terms of buyer demand. This was driven by first-time buyers who were keen to get on the property ladder before this year’s changes to stamp duty but also by second-steppers, including young families, wanting to upsize."
Next has upped its annual profit forecast by £5m after stronger than expected sales online, particularly overseas. However, it also warned that sales growth will slow this year, and said it will need to raise prices due to the impact of recent budget measures.
The UK fashion and homewares retailer faces a £67m increase in its wage costs in the year to January 2026, and said it will need to push through an “unwelcome” 1% rise in prices as well as operational efficiencies and other cost savings to offset the hit. This will affect sales, it said.
"We believe that UK growth is likely to slow, as employer tax increases, and their potential impact on prices and employment, begin to filter through into the economy."
Next reported a 5.7% rise in sales for the nine weeks to 28 December, excluding the impact of a change in timing of its annual discount event, our retail correspondent Sarah Butler reports.
It now expects profits for the year to the end of January to rise by 10% to just over £1bn for the first time.
Sales online, including Next branded items and its Label selection of other well-know brands, rose by 6.1% and overseas online sales were up by more than 30% but sales in stores fell by 2.1%.
Next is expected to be among the festive winners as fashion retailers had been expected to have endured a tough end to the year as a mild autumn led to widespread discounting across the high street. The retailer is known for holding out on discounting until late in the season and so may have benefited more from the late arrival of colder weather as well as its strong online service.
The agenda
• 8.30am GMT: Eurozone, France, Germany, Italy HCOB construction PMI for December
• 9am GMT: Italy Unemployment rate for November (previous: 5.8%)
• 10am GMT: Eurozone inflation for December flash (previous: 2.2%, forecast: 2.4%)
• 10am GMT: Eurozone unemployment rate for November (previous: 6.3%)
• 1.30pm GMT: US Trade for November
• 3pm GMT: US ISM Services PMI for December
• 3pm GMT: US JOLTs job openings for November
We'll be tracking all the main events throughout the day … |
