UK house price growth accelerated to 4.6% in the year to December, according to new figures published by the Office for National Statistics (ONS).

This was up from 3.9% in the 12 months to November, as the latest UK House Price Index (HPI) from the ONS revealed that the average house price hit £268,000 in December.

ONS data has revealed that annual house price inflation has been generally increasing since a low point of -2.7% recorded in the 12 months to December 2023. Although still lower than historically, the ONS also highlighted that total transaction volumes and new build volumes – which are available to calculate UK HPI estimates – have increased recently.

Across the UK, the latest figures revealed that average house prices increased in the 12 months to December 2024 to £291,000 (4.3%) in England, in Wales to £208,000 (3.0%) and in Scotland to £189,000 (6.9%). The average house price for Northern Ireland was £183,000 in Q4, a figure up 9% Q4 a year earlier.

Head of mortgages at Atom bank, Richard Harrison, said that the latest ONS figures “underline what a strong year 2024 was for house price growth”, with prices rising at their fastest rate since February 2023.

“Even with the unwelcome news of resurgent inflation, it is unlikely that 2025 will be much different,” Harrison added.

“Those hoping to purchase a home will have welcomed the cut to base rate, a move which has already fed through into lower mortgage rates from many lenders. While today’s inflation news may reduce the chance of a cut in March, the expectation of additional cuts to come this year, coupled with the increasing availability of higher LTV mortgages, will be further encouragement for those buyers.”

Commercial director at CHL Mortgages, Ross Turrell, said that the data adds to a “growing list of reasons for optimism about the UK property sector”.

“Buyers and investors are showing renewed confidence, and market momentum is building,” he added.

“However, while the outlook is positive, there is no room for complacency. The surge in transactions ahead of changes to stamp duty thresholds is a reminder that challenges remain, including regulatory pressures that could add complexity to investors’ plans in the months ahead.

“Lenders must therefore continue to take a pragmatic and flexible approach. While demand is high, brokers and borrowers still require support, particularly as rates remain elevated.”

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