U.K. house prices fell for the first time in nine months in December, as the country's Budget and higher mortgage rates dampened a recent flurry of homebuyer activity.
LONDON — U.K. house prices fell for the first time in nine months in December, as the country's Budget and higher mortgage rates dampened a recent flurry of homebuyer activity. U.K. house prices rose at a steady clip in 2024, increasing for five consecutive months following a brief spell of stagnation as sentiment picked up on the back of the U.K. election and the start of the Bank of England'sAmanda Bryden, head of mortgages at Halifax, said higher mortgage rates were likely to continue to weigh on the market in 2025, even as price growth remains"modest."
Analysts are now expecting transactions to pick up in the initial months of this year, as upcoming changes to a key homebuyer tax motivate buyers and sellers.