House prices in the UK continued their upward trajectory in December, defying expectations of a slowdown, according to a report released on Thursday by mortgage lender Nationwide.
Prices increased by 0.7% month-on-month in December, building on November’s robust 1.2% rise. Economists surveyed by Reuters had predicted a far smaller 0.1% monthly increase.
On an annual basis, house prices finished the year 4.7% higher than December 2023 levels, up from a 3.7% annual growth rate recorded in November. This marks the fastest annual price growth since late 2022.
Nationwide’s findings align with a trend of stronger-than-anticipated housing market data, a contrast to other economic indicators that suggest a broader slowdown across the UK economy.
“Mortgage market activity and house prices have shown remarkable resilience in 2024, especially given the affordability challenges facing potential buyers,” said Robert Gardner, Nationwide’s chief economist.
Nationwide maintained its forecast that house prices are set to grow between 2% and 4% in 2025. The report anticipates heightened activity in the first half of the year, driven by buyers rushing to complete transactions before an increase in property transaction taxes scheduled for April.