The UK housing market returned to growth in 2024, driven by a £22.3 billion increase in spending on house purchases, according to research by property firm Savills.
Overall, the total value of the UK housing market has expanded by 6.3% in 2024 to £379 billion. This equated to 1.1 million transactions at an average sale price of £343,822.
“Total spending on UK house purchases shifted back into positive territory in 2024 as stability returned to the mortgage markets,” comments Lucian Cook, head of residential research at Savills.
“While the total size of the housing market is below its pandemic peak of £521 billion, it remains £36bn larger than immediately before the pandemic.
“Further interest rate cuts expected this year will mean that the range of buyers coming to the market will widen, and we can expect to see their spending power pick up over the next 12 months.”
At a regional level, the greatest percentage increase in spending was seen in Northern Ireland (+13.4%), though it still only accounts for 1.4% of the total size of the housing market (£5.1 billion).
London saw just a +2.3% percentage increase in spend, as the size of its housing market (£72.8bn), fell below that of the South East (£74.5bn) for the first time in two years.
Size of UK Housing Market By Region
| Region | 2024 £m | Change £m | % Change |
| London | 72,846 | 1,646 | 2.3% |
| South East | 74,461 | 6,538 | 9.6% |
| East of England | 42,552 | 2,632 | 6.6% |
| South West | 39,416 | 2,412 | 6.5% |
| East Midlands | 22,842 | 910 | 4.1% |
| West Midlands | 24,921 | 1,366 | 5.8% |
| North West | 30,985 | 2,044 | 7.1% |
| Yorkshire and The Humber | 22,745 | 1,454 | 6.8% |
| North East | 8,977 | 19 | 0.2% |
| Scotland | 22,418 | 1,997 | 9.8% |
| Wales | 11,332 | 696 | 6.5% |
| Northern Ireland | 5,129 | 607 | 13.4% |
| UK | 378,623 | 22,319 | 6.3% |
Source: Savills using data from the Regulated Mortgage Survey, HMRC and the Mortgage Lenders Administrative Returns
This article is taken from Landlord Today