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Total value of the UK housing market up 6.3% last year


The total value of the residential housing market swelled by 6.3 per cent to £379billion last year, new data shows. 

The size of the housing market remains below its pandemic peak of £521billion reached in mid-2021, but was £36billion bigger than immediately before the pandemic 

There were 1.1million residential property transactions in 2024, with an average sale price of £343,922, Savills says.

The amount being spent on residential property increased by £22.3billion in 2024 on the previous year. 

‘Total spending on UK house purchases shifted back into positive territory in 2024 as stability returned to the mortgage markets’, Lucian Cook, head of residential research at Savills, said. 

London saw just a 2.3 per cent rise in spend, as the size of its residential housing market, which is around £72.8billion, fell below that of the south east of England for the first time in two years. 

Housing market: There were more than 1m residential property transactions in 2024, Savills said

Housing market: There were more than 1m residential property transactions in 2024, Savills said 

The largest percentage increase in spending on residential housing was seen in Northern Ireland, with a rise of 13.4 per cent year-on-year.

Across Britain, the £22.3billion upturn in spending on house purchases was driven by a £24.3billion, or 18.1 per cent, increase in the use of mortgage debt, according to Savills.

However, while the equity put down by mortgaged buyers jumped by £6.3billion, or 9.5 per cent, spending among cash buyers fell by £8.4billion, or just over 5 per cent. 

This meant cash and equity fell to 58 per cent of the total spend on residential housing last year, the findings suggest.

The largest increase in mortgage debt was among first-time buyers. In the first-time buyer category, mortgage debt surged by 21.4 per cent to £12.2billion, fuelled by higher transaction levels and a ‘slight easing’ in the loan-to-value ratio. 

Lucian Cook adds: ‘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.’

He added: ‘The rise in first-time buyers reflects the overwhelming desire of Britons to get a foot on the housing ladder. Especially given the lack of choice in the private rented sector, and the double-digit rental growth tenants have experienced over the past few years.

‘As a result, those who have been able to pull together a deposit have continued to take the plunge, despite higher house prices and mortgage rates.’ 

Cook said the government’s ambitious housing targets meant it had a vested interest  in overseeing a ‘stronger recovery in the size of the housing market.’

He added: ‘With constraints on public finances, it looks like that will need to be rooted in relaxation in mortgage regulations to further increase first-time buyer activity.

‘Meanwhile, an improvement in activity among home movers is heavily dependent on further cuts in interest rates and an improvement in consumer confidence.’ 

Under the stamp duty changes which will happen on 1 April, first-time buyers could pay up to £5,000 more on their home purchase than they would currently, and home movers could pay £2,500 more. 

This is because the house price thresholds at which someone starts to pay the tax are being reduced, back to the level they were at before the Conservative government made temporary changes in 2022. 

Last week, the Nottingham Building Society launched two new fixed rates with a hefty £2,500 and £5,000 cashback, for those buying properties worth £250,000 or more.

The £2,500 cashback mortgage is for buyers who have a 25 per cent deposit or equity from their existing home, and has an interest rate of 5.28 per cent.

The £5,000 cashback mortgage is for those with a 10 per cent deposit or equity, and has an interest rate of 6.15 per cent.

How to find a new mortgage

Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible.

Quick mortgage finder links with This is Money’s partner L&C

> Mortgage rates calculator

> Find the right mortgage for you 

What if I need to remortgage? 

Borrowers should compare rates, speak to a mortgage broker and be prepared to act.

Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.

Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees.

Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. 

What if I am buying a home? 

Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. 

Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people’s borrowing ability and buying power.

How to compare mortgage costs 

The best way to compare mortgage costs and find the right deal for you is to speak to a broker.

This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice.

Interested in seeing today’s best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.

If you’re ready to find your next mortgage, why not use L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.

> Find your best mortgage deal with This is Money and L&C

Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you. 

Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage 

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.



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