House prices in the UK increased by 1.9% year-on-year in 2024, with the average property price standing at £267,500 in November, Zoopla has revealed.

The firm’s latest house price index found that this compares to a drop of -1.2% in the same period last year.

It stated that the housing market has seen "sustained recovery" in sales over the year, adding that it now has the "largest pipeline of sales" working to completion for four years.

Zoopla said there are currently 283,000 sales worth up to £104bn, which is an increase of 30% year-on-year.

Despite positive movement in the housing market, Zoopla noted that the Budget has had an effect on buyers and how they want to invest.

The firm said: "Buyers have become more price-sensitive in recent weeks in the wake of the Autumn Budget and amid growing uncertainty over the outlook for mortgage rates, which have drifted higher. Buyers are currently paying 3.6% below the asking price, compared to 3.2% over the summer, however it remains a buyer’s market.

"We expect a greater choice of homes for sale and price-sensitive buyers to continue to keep UK price inflation in check over 2025."

In the 12 months to November, Northern Ireland saw the fastest rise in inflation, increasing by 6.5% year-on-year. The North West (3.5%) and the North East (2.8%) also saw increases, while house prices in Scotland and Wales increased by 2.6% respectively.

Areas such as the South East (0.7%), Eastern (0.8%) and the South Eest (0.9%) were the slowest regions in terms of house price inflation.

Zoopla stated: "The outlook for the housing market in 2025 will be dictated by the strength of the economy and labour market as well as the trajectory for mortgage rates, all set within the context of housing affordability. We believe mortgage rates are set to remain at current levels and buyers are likely to remain price-sensitive in the face of increased uncertainty over the economy and the impact of the Autumn Budget on the jobs market.

"UK house prices are expected to increase by 2.5% in 2025. However, the desire to move home remains driven by life stage and personal circumstances. We expect 1.15 million housing sales to take place over the year in 2025, up from 1.1 million in 2024."

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