Source: Sharecast
According to Zoopla's monthly house price index, the average house price in the UK in October was £267,200, slightly down on the month before but 1% higher than October 2023.
"The housing market has returned to growth in 2024, with more sales and higher house prices compared to 2023. The sales market has performed better than we expected a year ago, thanks to faster growth in household incomes and lower mortgage rates," the report said.
The number of new sales being agreed is rising as buyers attempt to lock in sales before the return of higher stamp duty rates from April 2025, with sales agreed 19% higher than last year and buyer demand up 25%. Zoopla said that half of existing owner-movers pay stamp duty currently, but that is expected to rise to 83% from next April.
This increase in activity means that house price inflation turned positive across all regions of the UK, with the biggest year-on-year price increases seen in Northern Ireland (6.3%) and the North West region (2.9%).
Looking ahead, Zoopla said that mortgage rates are likely to hold steady at current levels, with a 75% loan-to-value mortgage on a five-year fix likely to see a rate of 4.25%.
The property platform is expecting house prices to rise 2.5% in 2025, with estimated housing sales rising 5% to 1.15m, supported by rising incomes and changes in the way lenders assess affordability.