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Nationwide: December (and Q4 regional) House Price Index: "December was far busier than it usually is"

ended 02. January 2025

House prices increased by 0.7% in December, after taking account of seasonal effects, following a 1.2% rise in November according to the Nationwide. UK house prices ended 2024 up 4.7% compared with December 2023, though prices were still just below the all-time high recorded in summer 2022. Meanwhile, data for Q4 showed all regions saw price rises over 2024. Newspage asked property and mortgage experts for their views, below. 

9 responses from the Newspage community

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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
December was far busier than it usually is and that has clearly shown through in this initial gauge of house price growth. Demand was strong all the way up to Christmas Eve, a day that I had three clients get their offers accepted. People were laser-focused on getting their transactions moving before the year was out and the phone continued to ring between christmas and the New Year. With lenders like the Halifax and Leeds Building Society already cutting rates earlier this week, there could be 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 so it will, too.
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Nick HarrisVerified
Founding Director at Quarters
We’d expected a first-time buyer rush given the coming changes to stamp duty following the Budget, but December was much busier than usual with downsizers being the most active group. This was interesting as this demographic usually avoid the short and dark days. Judging by enquiry levels over the festive period, January and the first quarter will be busy.
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Craig FishVerified
Director at Lodestone Mortgages
2024 finished on a high, with the fourth quarter our best of the year, once again showing the resilience of the property market after the Budget. December was more focused on remortgages for us. This is likely to be where most business will be done in 2025, and if more lenders slash rates, we could see a busy first quarter of 2025.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
December and the fourth quarter were buoyant as buyers raced to complete transactions ahead of punitive stamp duty hikes. This urgency drove strong demand across both owner-occupier and buy-to-let markets, with many seeking to save thousands in additional costs. Looking ahead, the stamp duty deadline will continue to fuel activity in the next three months, alongside expected competitive mortgage pricing. Buyers and movers will strive to maximise the short lived opportunity they have, whilst tackling cost of living increases as well as testing mortgage affordability amidst the changing fiscal landscape.
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Simon BridglandVerified
Broker at Charwin Private Clients
Buyers were keen to do business in December but they weren’t helped by a very obvious strategy of down valuations mandated by the surveying gods for some reason. It’s as if they are expecting a market reduction, despite the good indications of healthy activity from willing and eager buyers. The next two weeks are key to a strong start for 2025, and further mortgage rate reductions this week will help support a strong amount of interest in the first month of the year.
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Rohit KohliVerified
Director at The Mortgage Stop
December saw a mixed property market, with many buyers rushing to beat the April stamp duty changes. Adding to the pressure, thousands of transactions aiming to complete before the deadline could be at risk from potential civil service strikes at the Land Registry, which could cause delays and collapse deals. In buy-to-let, smaller landlords continued to exit due to rising costs, while larger investors seized opportunities. The fourth quarter was steady but clouded by frustration over the Autumn Budget’s neglect of affordability issues. Mortgage pricing will be key to sustaining demand in 2025 as it was in 2024.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
Demand from borrowers in December didn’t quieten down until the third week, which is stronger than most years. Nothing yet will have halted the steady increase in property prices, though this growth is expected to slow as the stamp duty changes and rising inflation start to hit home in the second quarter of 2025. As the Budget starts to bite in earnest, demand could drop off.
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Gabriel McKeownVerified
Political & Economics Writer at Sad Rabbit - Substack Newsletter
A tale of cautious optimism unfolds in Britain's property market, with house prices showing resilience in the face of persistent economic uncertainty. As Nationwide releases its December HPI, the property market has shown continued strength, defying gloomy predictions and sparking enthusiasm among buyers and sellers alike. However, there is still considerable uncertainty on the horizon, with the economy on unsteady ground following Chancellor Reeves £40 billion tax-raising Budget and continued inflationary pressures. With interest rates still elevated following the Bank of England’s December vote to maintain rates at their current levels and the recent inflationary uptick to an eight-month high, the housing market still has headwinds. However, with a growing trend of global easing putting pressure on the bank to accelerate rate cuts, the combination of a competitive mortgage landscape and expectations of rate cuts could create an environment ripe for increased activity in 2025.
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Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
December brought a calmer tone to the property market compared to previous years. Demand from owner-occupiers was steady but noticeably more cautious. Buy-to-let investors, meanwhile, seemed to take a step back, likely reflecting concerns over rising borrowing costs and tightened affordability. While the stamp duty deadline offered a small lift, it didn’t quite create the usual flurry we’ve come to expect. The fourth quarter overall was marked by uncertainty. The Budget, while not disruptive, added some hesitation to the market, particularly among first-time buyers navigating the affordability squeeze. Heading into January and the first quarter, mortgage pricing will play a decisive role in shaping demand. Competitive rates could drive activity, but without them, the market may remain subdued. Looking ahead, resilience will remain key. A pragmatic approach to lending, combined with informed decision-making by buyers, will determine how 2025 unfolds.