š” December 2024 - What's happening to house prices?
New seller asking prices drop by a seasonal 1.7% (-Ā£6,395) this month to Ā£360,197, in line with the usual December monthly fall, with sellersā pricing power diminishing as Christmas approaches... READ MORE
Here are 5 key points from the report that you ought to know ā¬ļø
š¢ Prices end the year 1.4% above December 2023, and Rightmove predicts that new seller asking prices will rise by 4% next year, with forecast mortgage rate drops set to further improve affordability and stimulate market activity.
š¢ Despite the festive lull, activity remains substantially stronger than the same period a year ago, with the number of sales being agreed up by 22%, and new buyer demand up by 13%.
Rightmoveās real-time data also captures the impact of the looming stamp-duty deadline on March 31st 2025:
š¢ Sellers of smaller properties in higher-priced areas are trying to beat the deadline to avoid higher tax.
š¢ Prices are holding up best in the first-time-buyer sector, especially homes priced below the Ā£300,000 threshold.
š¢ Despite the signs of a stronger 2025, headwinds remain, with the impact of Budget measures being a challenge.
Tim Bannister, Rightmoveās Director of Property Science said:
āNew sellers in December have to work particularly hard to capture the attention of Xmas-party and festivity-distracted buyers, and the 1.7% average monthly fall is a fitting gift for those who are still buying homes rather than presents. Despite this monthly drop, prices have risen by 1.4% compared with this time in 2023, broadly in line with our prediction of a 1% rise in prices this year. Looking at our data and the UKās underlying housing needs, there are lots of reasons to be positive about next year. However, as weāve seen several times this year, the market is sensitive to unexpected events and the direction of travel can change. The stamp duty changes are a cloud over the market at the moment, with some groups much more impacted than others, and therefore keen to avoid the additional charges. After the important first three months of the year in 2025, a lot depends on how quickly normal activity is resumed with higher stamp duty in England. A Bank Rate cut and some mortgage rate falls early on in the year would help to settle the market and provide a boost to sentiment and consumer confidence.ā
