Half of homes increased in value in 2024 by £7,600 as house prices returned to growth
-
Homeowners checking the value of their home on Zoopla are likely to have seen an increase in value with half (15 million) of all homes across the UK increasing in value in 2024 by an average of £7,600 or more
-
A third of UK homes registered small value falls, mostly across Southern England, as higher mortgage rates reduced buying power
-
The overall average price change for all 30m homes was a £2,400 increase
-
Home values have been slower to recover in Southern England, with just over a third (36 per cent) of homeowners seeing home value gains in 2024
-
Nearly two-thirds (62 per cent) of homes across Northern regions of England and Scotland saw home values increase
-
Seven in ten homes gained value in the North East, but the average value increase over the year was highest in the North West at £4,400
UNDER EMBARGO UNTIL 00.01 TUESDAY 14TH JANUARY, 2024, London: New analysis from Zoopla, one of the UK’s leading property websites, has revealed that half of the UK’s 30 million homes increased in value in 2024 as house prices returned to growth following a fall in house prices over 2023 due to weakened buyer demand as a result of higher borrowing costs.
A total of 15 million UK homes increased in value by one per cent or more in 2024, up 42 per cent from the 10.6 million homes that increased in value over 2023. The average increase in value for homes posting price gains was £7,600, with 6.9 million homes recording a price increase of £10,000 or more.
Whilst 2024 saw a broad recovery of house prices, a third (9.2 million homes) still recorded a price decline of one per cent or more, although this was still lower than the 12.8 million homes that saw a decline in house prices in 2023. Just under six million homes saw broadly static prices over the year changing by +/- one per cent.
Table 1: Half of homes in Great Britain increased in value in 2024
Source: Zoopla
Home value gains lower in Southern England
A clear north-south divide remains when it comes to the fortunes of homeowners in 2024 with fewer homes recording an increase in value in Southern England compared to the rest of Britain. This reflects the underlying affordability of homes and the impact of higher mortgage rates on buying power and house prices in areas with above-average home values.
Just a third (36 per cent) of homes increased in value by one per cent or more across the regions in Southern England. Two-fifths (41 per cent) of homes fell in value by an average of £8,700. This is in sharp contrast to the northern regions of England and Scotland where 63 per cent of homes registered value gains over 2024.
Coastal towns in Kent and East Sussex were least likely to register price gains in 2024, with many towns seeing less than ten per cent of homes increase in value and more than three-quarters of homes registering small price falls. This is due to the fading of the pandemic boom and the subsequent search for additional space as more workers return to the office. An additional factor is the increase in second homeowners selling in the face of a doubling in council tax from April, which is impacting pricing across many coastal towns.
Table 2: Average value change by region
|
Region/ Country |
Avg. value change over 2024 |
% of homes with value increase of 1% or more |
No. of homes with value increase of 1% or more |
% of homes with value decrease of 1% or more |
No. of homes with value decrease of 1% or more |
|
North West |
£4,400 |
63% |
2,090,000 |
21% |
710,000 |
|
North East |
£4,300 |
68% |
820,000 |
19% |
230,000 |
|
West Midlands |
£3,900 |
59% |
1,480,000 |
22% |
560,000 |
|
Yorkshire & Humberside |
£3,700 |
61% |
1,500,000 |
23% |
570,000 |
|
Scotland |
£3,200 |
61% |
1,580,000 |
24% |
640,000 |
|
Wales |
£2,300 |
52% |
760,000 |
29% |
420,000 |
|
East Midlands |
£1,700 |
48% |
1,010,000 |
31% |
660,000 |
|
London |
£600 |
40% |
1,510,000 |
37% |
1,430,000 |
|
South West |
-£300 |
37% |
970,000 |
40% |
1,040,000 |
|
South East |
-£900 |
35% |
1,390,000 |
41% |
1,620,000 |
|
East of England |
-£1,300 |
33% |
880,000 |
43% |
1,150,000 |
Source: Zoopla
Lower mortgage rates and rising incomes over 2024 have started to repair housing affordability which saw more homes in Southern England increase in value over 2024 compared to 2023, from 2.8 million in 2023 to 4.8 million in 2024.
Areas in Wiltshire, Gloucestershire and Oxfordshire saw half of all homes register price gains over 2024. Additionally, Berkhamsted in Hertfordshire saw the largest national average annual price increase at £24,500.
House value increases most common in Northern England
Housing is more affordable outside Southern England largely due to lower house prices in comparison to incomes, which creates more headroom for values to increase, despite higher borrowing costs. More than three in five homes increased in value over 2024 across the three regions of Northern England and Scotland
The North East is one of the most affordable regions and, as a result, seven in ten homeowners (820,000) in the region saw the value of their home increase by an average of £4,300 with one in five (270,000) homeowners seeing house price growth of £10,000 or more. Peterlee in County Durham saw the highest proportion of properties registering higher home values, with 83 per cent registering an increase by an average of £6,100.
The North West saw 63 per cent of homes increasing in value by one per cent or more, averaging £4,400, the highest average gain across all regions and countries of Great Britain. The Cheshire area registered the largest value gains, with six in ten homes in Congleton and Knutsford increasing in value by £10,000 or more.
In Scotland and Yorkshire and the Humber, six in ten homes also gained value in 2024, with average increases of up to £19,300 (Biggar in Scotland), and £15,700 (Ripon in Yorkshire and the Humber).
Table 3: Towns with the highest percentage of homes increasing in value in 2024
|
Region/ Country |
Town |
% homes with value increase of 1%+ |
No. of homes going up in value |
Avg. value change (£) |
|
East Midlands |
Glossop |
67% |
10,700 |
£7,000 |
|
East of England |
Berkhamsted |
53% |
5,900 |
£24,500 |
|
London |
Waltham Forest |
64% |
74,800 |
£8,700 |
|
North East |
Peterlee |
83% |
14,500 |
£6,100 |
|
North West |
Blackburn |
77% |
48,700 |
£8,100 |
|
Scotland |
Carluke |
82% |
7,800 |
£8,900 |
|
South East |
Thame |
56% |
4,100 |
£5,600 |
|
South West |
Portland |
54% |
3,700 |
£2,900 |
|
Wales |
Ferndale |
74% |
4,500 |
£3,900 |
|
West Midlands |
Wednesbury |
79% |
16,600 |
£6,000 |
|
Yorkshire and Humber |
Normanton |
81% |
8,700 |
£7,500 |
Source: Zoopla
Table 4: Towns with the highest percentage of homes decreasing in value in 2024
|
Region/ Country |
Town |
% homes with value decrease of 1%+ |
No. of homes falling in value |
Avg. value change (£) |
|
East Midlands |
Corby |
74% |
24,700 |
-£6,000 |
|
East of England |
Bungay |
79% |
4,400 |
-£8,400 |
|
London |
Kensington and Chelsea |
72% |
73,200 |
-£44,300 |
|
North East |
Houghton Le Spring |
48% |
13,100 |
£3,800 |
You May Also Enjoy
How to Clean Your Rental Property for a Full Deposit Return
Two-year mortgage deals the lowest they’ve been since 2022 – but will they remain?
CP12 Landlord Certificates: What They Are and Why You Need Them
Horse Guards Parade property prices up 17% since last Trooping the Colour
What landlords need to know about the upcoming Renters Rights Bill
