The housing market has been described as "turning" by e.surv, despite house prices in England and Wales falling by 2% year-on-year.

The firm’s house price index for December revealed that the average property price stood at £257,365.

Despite this drop, this is the lowest fall since August, when prices fell by 1.7%.

Furthermore, December marks the first positive movement in monthly prices since August, with average prices increasing slightly by 0.2%.

Director at e.surv, Richard Sexton, said: "While values remain approximately 2% lower than a year ago and 6% below their late-2022 peak, the broader picture is one of a market exceeding expectations in terms of activity, mortgage lending, and transaction volumes.

"This year-end performance reflects the stabilising effects of improving consumer confidence and a market that has adjusted to economic challenges. The Chancellor’s announcement on stamp duty changes is anticipated to drive a busier start to 2025, as buyers bring forward purchases to avoid the additional SDLT charges from April. However, regional disparities continue to shape the overall picture."

In terms of regions, the North East (£198,733), the North West (£253,902) and Yorkshire and the Humber (£244,996) recorded positive annual changes to their average house prices in November, increasing by 1.6%, 0.9% and 0.3% respectively.

London was the worst performing region, with house prices dropping by 4.5% annually. However, it remained the region with the highest house price, standing at £666,731 in November.

Sexton concluded: "Looking ahead, attention will turn to the Government’s forthcoming long-term housing plan, which is expected to address affordability challenges and increase housing supply. While the advent of new stock is still some way off, the very clear direction of travel will give buyers cause for optimism in the longer run.

"The housing market in 2024 demonstrated its resilience, and there is cautious optimism for further stability and growth in the year ahead."

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