UK House Prices Decline for First Time in Nine Months

Higher mortgage rates and tax changes weigh on market as December sees a 0.2% drop in average property values.

House prices in the UK fell 0.2% in December, marking the first monthly decline since March 2024, according to Halifax data.
Annual house price growth slowed to 3.3% in 2024, down from 4.7% in November, as affordability challenges impacted demand.
Chancellor Rachel Reeves’s October Budget, which included £40bn in tax increases, contributed to rising mortgage rates and uncertainty in the housing market.
Upcoming stamp duty changes, set to take effect in April, have prompted a short-term surge in transactions but are expected to dampen market activity later in the year.
Analysts predict modest house price growth in 2025, though affordability concerns and a slower-than-expected reduction in Bank of England rates may continue to pressure the market.