By GB News (World News) | Created at 2024-12-28 12:14:20 | Updated at 2024-12-29 02:29:22
14 hours ago
House prices have increased in the last 12 months, with Belfast seeing the biggest growth, a new Zoopla House Price Index showed.
It also suggested house buyers are becoming increasingly price-sensitive, with sales now being agreed at 3.6 per cent below asking prices.
This marks a shift from summer 2024, when buyers were agreeing purchases at 3.2 per cent below asking price.
Belfast leads the way in city house price growth, with a 6.9 per cent annual increase in the 12 months to November 2024. Manchester follows with a 3.4 per cent rise, whilst Liverpool saw prices climb by 2.9 per cent.
House prices were up 6.9 per cent in Belfast
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Annual house price change
- Belfast - up 6.9%
- Manchester - up 3.4%
- Liverpool - up 2.9%
- Glasgow - up 2.6%
- Birmingham - up 2.4%
- Sheffield - up 2.3%
- Nottingham - up 2.2%
- Newcastle - up 2.1%
- Cardiff - up 2%
- Leeds - up 1.9%
- Bristol - up 1.4%
- Bournemouth - up 1.3%
- Southampton - up 1.1%
- Edinburgh - up 1%
- Oxford - up 1%
- Cambridge - up 1%
- Leicester - up 0.9%
- Portsmouth - 0.6%
- Aberdeen - 0.3%
Despite the increased price sensitivity, the volume of agreed sales is 30 per cent higher than a year ago.
The market has seen steady growth in sales agreements throughout 2024, building the largest pipeline of sales at year-end for four years.
This surge demonstrates how buyers and sellers have returned to the market after previously delaying moves due to higher mortgage rates. The substantial pipeline of sales is set to complete in the first half of 2025.
Many buyers are rushing to finalise deals before the upcoming stamp duty changes take effect in April 2025.
Executive director at Zoopla Richard Donnell said: “Buyers and sellers returned to the housing market in 2024 having delayed moves in the face of higher mortgage rates.
A property expert commented on the report
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“More sales have supported a return to house price growth across the country but home buyers have become more price sensitive in recent weeks as mortgage rates drift higher."
He predicted: “Affordability constraints will keep the pace of house price growth in check over 2025 but there will be enough price inflation to support five per cent more home moves.”
From April 2025, first-time buyers in England and Northern Ireland will see significant changes to stamp duty thresholds. The "nil rate" band for first-time buyers will reduce from £425,000 to £300,000.
This upcoming change appears to be driving the current surge in market activity, as buyers rush to complete transactions before the new rates take effect.
The impending stamp duty modifications are contributing to the largest end-of-year sales pipeline seen in four years.
