UK House Prices Defy Expectations with Surprise December Surge

House prices in the UK experienced an unexpected increase in December 2024, as reported by Nationwide. Despite predictions of a slowdown, prices rose by 0.7% month-on-month, marking a 4.7% annual increase. The housing market remains robust, with expectations of further growth in early 2025 despite economic challenges.

In a surprising turn of events, UK house prices saw another rise in December, continuing the property market's remarkable upswing, according to Nationwide. The mortgage lender reported a 0.7% increase in monthly terms, defying economist forecasts of a slowdown.

A Reuters survey had anticipated a modest 0.1% increase, yet house prices finished the year 4.7% higher than December 2023, up from a 3.7% rise in November. This marks the most significant annual growth rate since late 2022.

Nationwide's chief economist, Robert Gardner, commented on the surprising resilience displayed by the housing market amid affordability hurdles for prospective buyers. The lender forecasts an increase in house prices by 2% to 4% in 2025, with heightened activity expected ahead of April's property tax adjustments.

(With inputs from agencies.)