In the News Teaching Activity – why did house prices rise in 2024? (Jan 2025)

The average house price in the UK was £269,426 in December, representing an annual increase in house prices of nearly £12,000 in 2024.

UK house prices in 2024 were shaped by a mix of robust demand and constrained supply. Rising mortgage approvals, which surpassed pre-pandemic levels, supported increased activity despite affordability challenges for buyers. Nationwide attributed part of the year’s growth to government changes in stamp duty, which spurred transactions ahead of the March deadline for higher rates. However, regional disparities persisted, with Northern Ireland seeing the strongest annual growth at 7.1%, while southern England lagged at 2.2%. These factors combined to drive a 4.7% overall annual rise, reflecting the market's resilience.

https://www.theguardian.com/business/2025/jan/02/uk-house-prices-rise-for-fourth-month-in-a-row-says-nationwide

UK house prices rise for fourth month in a row, says Nationwide | Housing market | The Guardian

1. What factors have been influencing the demand for housing in the UK in 2024?

2. What factors are likely to have been influencing the supply of housing in the UK in 2024?

3. Using a demand and supply diagram, show how 'robust demand and constrained supply' lead to a rise in house prices.