Home values climbing in 2024
Home values have climbed in 2024 amid growing buyer confidence and a rise in the number of sales. This has also translated into a “firming up” of home values, says Zoopla.
The firm’s latest estimates reveal that the average UK home is now worth £278,000, a rise of £2,400 from December 2023. Every month, value estimates are generated for nearly 30 million homes in the UK using a combination of local sold and asking price data to show indicative home values.
The data has revealed that half of the nation’s homes, 15 million, increased in value in the first half of 2024 by at least 1%. That’s the highest number since December 2022. While Zoopla admits that the “gains are modest,” a third of UK homes or 10 million, climbed by around £5,000 in value, nearly double the number that saw the same increase in 2023. In the same period, 8 million homes held on to their values or saw a change of no more than 1%.
Overall, 6.7 million homes in the country have fallen in value by at least 1% since the end of 2023. This is a sign that some markets are taking a longer time to recover from the effects of higher mortgage rates.
That said, 14 million homes saw their values drop at the end of last year.
The north-south divide in value has continued. Fewer homes down south have gained value due to higher prices exaggerating the impact of higher mortgage rates on buyer power. The north is seeing the fastest rise in values.
Homes in the Yorkshire and the Humber area climbed by 1.4% while those in the North-east rose by 1.9%. Half of Northern homes went up by £1,000 to £10,000 while a million gained over £10,000. Homeowners in Oldham (83%), Wakefield (77%) and Co. Durham were most likely to see their home values increase by 1% or more.
