UK House Price Index: December 2024 – Insights for the North West

Key National Statistics

• Annual UK house price inflation: +1.9%
• Gap between asking and achieved sale price: 3.6%
• Projected price inflation for 2025: +2.5%

North West Housing Market Performance

The North West has emerged as one of the strongest regions for house price growth, with annual inflation at +3.5%, significantly higher than the national average. The region's affordability and strong demand have supported consistent growth throughout 2024.

Why the North West Stands Out

The North West attracts diverse buyers With its competitive pricing, vibrant cities, and rural appeal. Cities like Manchester and Liverpool and towns across Lancashire and Cheshire offer excellent investment opportunities for buyers and investors alike.

Factors Shaping the Market in 2024

Increased Buyer and Seller Activity

Sales activity in the North West has mirrored the national trend, with a 23% year-on-year increase in agreed sales during late 2024. The availability of more properties on the market has been a key driver of this growth, providing buyers with greater choice.

Price Sensitivity Among Buyers

Despite the market recovery, buyers remain cautious due to concerns about mortgage rates and economic conditions. In the North West, buyers currently pay 3.6% below asking prices, reflecting the broader trend of increased price sensitivity.

Strong Sales Pipeline

The North West has contributed significantly to the UK's largest sales pipeline since 2020. With 283,000 homes worth £104bn progressing towards completion, the region is poised for sustained activity in early 2025.

Predictions for 2025

The North West housing market is expected to maintain its momentum into 2025, with house prices projected to grow by +2.5%. The region's affordability and strong economic fundamentals position it as one of the UK's most resilient markets.

Market Drivers for 2025

• Affordability: The North West remains one of the most affordable regions in the UK, offering room for price growth compared to southern regions.
• Employment Growth: Key cities in the region continue to attract investment, bolstering local economies and housing demand.
• Stable Mortgage Rates: While rates are unlikely to fall, stability will provide clarity for buyers and sellers.

Expert Tips for Buyers and Sellers in the North West

For Buyers

• Act swiftly when you find the right property, as demand remains high for competitively priced homes.
• Explore areas like Preston, Blackpool, and Lancaster for affordable housing options with strong growth potential.

For Sellers

• Price your property competitively to attract motivated buyers in a market that remains price-sensitive.
• Highlight features like energy efficiency and modern upgrades, which are increasingly important to buyers.

The North West housing market has performed strongly in 2024, with steady price growth and robust sales activity. As we move into 2025, buyers and sellers in the region can expect continued stability and opportunities, but success will depend on understanding local market dynamics.

For more insights or assistance with buying or selling your property in the North West, visit Farrell Heyworth Estate Agents.