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Halifax: House prices down 0.2% in December, annual growth at 3.3%

ended 07. January 2025

House prices decreased by -0.2% in December but were up +3.3% on the year (vs +4.7% the previous month) according to the Halifax December House Price Index. The typical  property now costs £297,166. Newspage asked property experts for their views, below.

10 responses from the Newspage community

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David Stirling
Director at Mint Mortgages & Protection
Here in Northern Ireland demand again translated into good annual growth at +7.4%, mainly due to a lack of stock on sale. With the increase in Stamp Duty levels to be implemented in April and a predicted mortgage rate war between lenders to sweep up borrowers early in the year, house prices should edge back upwards and property remains a good investment for those who can afford to buy. A small decrease in house prices in December is not surprising, as buyers and sellers alike attempted to make some sense of the Budget. The unpopular October Budget that included an immediate hike in Stamp Duty for second homes, cooled the buy-to-let market in particular so demand is likely not as high as it was in some regions.
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Daniel Hobbs
CEO at New Leaf Distribution
House prices may have been down slightly in December according to the Halifax, but demand is by no means out. Many would-be buyers were trying to get themselves in a position to beat the stamp duty deadline last month and activity levels were far higher than usual, which was reflected in the Nationwide HPI. If the rate war some are anticipating starts to rage in the first quarter then prices may once again start to rise. The property market remains resilient despite the growing economic headwinds, as reflected in the annual growth figure of 3.3%. Modest house price growth in 2025 seems a fair assessment of market conditions.
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Mark Posniak
Managing Director, Short Term Finance at Maslow Capital
While house prices may have dipped slightly in December, the persistent imbalance between housing supply and demand continues to underpin values. There is a fundamental lack of housing stock to meet this demand and this is refelected in growth of 3.3% over the year. The combination of pent-up demand and structural supply issues remains a key driver of growth and stability in the residential property sector, despite the occasional monthly drop. For prospective buyers and homeowners, the steady overall performance reflects confidence in the long-term value of residential property in the UK, further cementing its position as a cornerstone of financial security and investment.
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Craig Fish
Director at Lodestone
December is always a hard month to read too much into so this data should be taken with a pinch of salt. If interest rates drop as expected in 2025, then it’s likely that prices will continue to rise. We also expect to see an uptick in mortgage approvals during the year as mortgage affordability slowly improves. It may not feel like it but there are reasons to be optimistic given expected cuts to the base rate.
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Kundan Bhaduri
Entrepreneur at The Kushman Group
There was both caution and resilience in December. While the festive season traditionally cools the market, buyers and sellers seemed locked in a quiet stand-off, waiting to see who blinks first. Heading into the first quarter of 2025, the focus will remain on how higher interest rates shape demand. Despite affordability pressures, key areas like commuter belts should continue to see steady interest, while city centres may face more uncertainty. One thing you can always guarantee with the UK property market is that it always has a way of keeping us all guessing.
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Katy Eatenton
Mortgage & Protection Specialist at Lifetime Wealth Management
Demand was phenomenally strong in December so I'm slightly surprised that prices edged down marginally. The phone rang all the way up to Christmas Eve and continued to ring between Christmas and the New Year as people sought mortgages to buy their homes. There is still the potential for a mini rate war in January, which will further boost activity levels if it does materialise. The stamp duty deadline is definitely one contributor to the unseasonal demand in December but we are seeing activity all the way up the property ladder as people want to be in their new homes by the spring ready for the summer. Affordability remains a challenge but if rates continue to improve, that will provide some support.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Last week's Nationwide house price index showed prices increased in line with waistlines over the festive period, but the Halifax data tells a different story. In our experience, demand is robust overall and the property market shows no signs of abating, at least whilst there is still hope to complete before the stamp duty changes. The stamp duty changes are undoubtedly a key driver of demand at present, which is supporting property values.
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Simon Bridgland
Director at Release Freedom
The nation’s appetite for property put on a great show in December, as good as my local pantomime. With naysayers shouting out that a market dip is behind you, buyers boomed back with an almighty "oh no it’s not". It's just a shame that the paying audience have been unnessessarily affected by the villains of the play, pessimistic surveyors.
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Kelsey Phillips
Head of Specialist Lending at Arose Finance
Though prices fell slightly in December, there are grounds for optimism for UK property prices this year despite the impending sunset of the stamp duty threshold relief in March. Land Registry volumes are higher than they have been for years, mortgage approvals for new purchases are robust and the market is expecting the weighted average cost of borrowing to reduce through 2025. House demand is improving, but supply is not increasing fast enough such that rental growth remains supported.
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Ben Perks
Managing Director at Orchard Financial Advisers
Property pricing has been persistent throughout 2024 and increased by 3.3% over the year. Whilst this doesn’t leave home owners punching the air with delight, it does give greater optimism for this year. As market conditions improve, affordability eases and competition builds, house prices could do better than expected. We’ll also see a resurgence in London: after falling behind the rest of the UK in property price growth, they are now closing the gap.