The UK housing market ended 2024 on a strong note, industry data showed, with prices rising across the country.
According to the latest residential market survey from the Royal Institution of Chartered Surveyors, the house price balance was 28 in December, up from 24 in November.
It was the highest reading since September 2022. That was the last survey before Liz Truss’ disastrous mini budget, which led to soaring borrowing costs, a spike in mortgage rates and a slump in house purchases.
In addition, all parts of the UK saw house prices move higher in December, Rics noted, though the strongest growth continued to be seen in Northern Ireland and Scotland.
The number of new buyer inquiries eased, with the balance falling to 5 from 11 posted in both November and October.
But sales volumes improved, with a net balance of 7 indicating sales growth - compared to just 1 in November - while new instructions jumped, with a balance of 14. Rics said the increase in new instructions, the sixth consecutive month, was likely due to upcoming changes to stamp duty.
Simon Rubinsohn, chief economist at RICS, said: "The latest survey points to a further improvement in sentiment in the housing market, despite concerns about the impact of rising bond yields on borrowing costs. Most significantly, the signals from the survey around expectations over the next 12 months also remain solidly positive for now. However, the resilience of the uplift in market mood could be tested if the mortgage rates do begin to climb in a material way over the coming months. That, critically, would also be a concern for developers, who will want to see a solid market as a backdrop for ramping up house building."
