LONDON (Reuters) -British house prices rose at their fastest pace in almost two years in the 12 months to December, according to official data published on Wednesday that added to signs of a recovery in the housing market.
Average house prices rose by an annual 4.6% to 268,000 pounds ($337,760) in December 2024, the fastest increase since January 2023 and up from a 3.9% increase in the 12 months to November, the Office for National Statistics said on Wednesday.
Other measures of the housing market have shown a revival in demand, helped by a reduction in borrowing costs that is expected to continue in 2025 and a rush to complete purchases before purchase taxes rise for many buyers in April.
However, the ONS said prices in London showed no growth and lagged behind other regions, which were led by northeast England which showed a 6.7% increase in house prices.
By contrast, monthly rents for private residential properties in London increased by more than anywhere else in Britain in the 12 months to January, jumping by 11.0% to an average of 2,227 pounds, although the increase was slower than December’s 11.5% rise.
Private-sector rents across Britain in January were 8.7% higher than in the same month last year at 1,332 pounds a month, slowing from December’s 9.0% rise.
($1 = 0.7935 pounds)
(Writing by William Schomberg; editing by David Milliken)
