The UK housing market has made a remarkable comeback in 2024, with a £22.3 billion increase in total spending on house purchases.
This resurgence has pushed the market’s overall value to £379 billion, marking a 6.3% growth compared to the previous year.
Despite remaining below the pandemic peak of £521 billion, the current figures are still £36 billion higher than pre-pandemic levels. This reinforces the sector’s resilience and ongoing recovery.
Mortgage Stability Drives Market Confidence
Industry analysts credit this rebound to improved stability in the mortgage market. A growing number of buyers are regaining confidence. Lucian Cook, head of residential research at Savills, highlighted that as mortgage rates stabilize and interest rate cuts are expected, buyer demand will likely increase.
Regional Housing Market Growth
Regional trends have varied across the UK. Northern Ireland saw the highest percentage increase in spending at 13.4%, but it still makes up only 1.4% of the total market, valued at £5.1 billion.
The South East overtook London for the first time in two years, with its market size reaching £74.5 billion. London, on the other hand, grew by just 2.3%, bringing its market value to £72.8 billion.
Other regions also saw growth:
- Scotland recorded a 9.8% increase
- The South East climbed by 9.6%
- The North West expanded by 7.1%
- The North East had minimal growth at just 0.2%
Future Outlook for the UK Housing Market
Experts predict that falling interest rates and improving economic stability will further boost the market. In 2024, over 1.1 million property transactions took place, with the average home selling for £343,822.
With strong demand and better affordability on the horizon, industry leaders remain optimistic that the housing market will continue its upward trajectory into 2025.
