Press Round Up December 2024

Tue 21 Jan 2025

UK house prices rose unexpectedly in November, according to Nationwide building society, a 1.2 per cent month-on-month increase. Jeremy Leaf, principal of Jeremy Leaf & Co, told The Guardian: “In our offices we are seeing prices hardening and stock levels rising, partly because the Budget, though not particularly helpful, was not as bad as many feared, either.” He explained further in The Evening Standard: “As a result, some pent-up demand was released and buyers are digging a little deeper. That extra choice, as well as broad acceptance that inflation and mortgage rates will not reduce as far and as fast as many expected, has meant caution still prevails."

The Halifax house-price index painted a similarly encouraging picture, with prices rising for the fifth consecutive month in November. Jeremy Leaf told This is Money: “The market is showing its teeth, despite the extra Budget taxes in particular reducing the likelihood of early cuts in mortgage rates and prospect of slower wage growth.” He expanded in The Evening Standard: "Demand continues to be strong, particularly for competitively-priced homes in lower-value areas. That has also given a lift to the rest of the market by releasing second-steppers and connecting chains."

Tenant demand fell for the first time in November since the pandemic period, according to the Royal Institution of Chartered Surveyors. Jeremy Leaf told The Financial Times: “Demand and rent levels have eased in response to affordability concerns, particularly for those properties where the increases were previously the furthest and fastest."

Buying a house for cash should in theory be more straightforward than if you need a mortgage. Jeremy Leaf told Homebuilding & Renovating: “This is particularly the case given the issues that often arise, not just in obtaining finance in the first place, but with a surveyor’s valuations for mortgage purposes. A valuation can come in lower than the price offered and accepted by buyer and seller, which means a tussle with the lender."

Will house prices go up in 2025? Jeremy Leaf told The Daily Mail: “We don’t anticipate much of an uplift in values over the coming year, perhaps up to 5 per cent on average. Of course, such an average conceals highs and lows for different properties in different areas. A slow improvement in activity, combined with increased buyer and seller realism, is expected in 2025. Interest from first-time buyers will probably accelerate before the stamp duty concession is removed at the end of March now that fewer investors will probably be competing for similar properties after their liability for the same taxes rose. The recent upward direction of travel for mortgage approvals – a reliable indicator of future activity even though many were trying to beat significant Budget taxes – will mean a good start to the new year at least seems assured.