House values across the UK returned to growth in 2024, with nearly half of the nation’s 30 million homes seeing an average increase in their estimated worth of £7,600. This recovery was particularly pronounced in the northern regions of England and Scotland, where nearly two-thirds of homes saw their values rise.
A total of 15 million homes — about 50% of the UK housing stock — registered an increase in value of 1% or more in 2024, according to figures from property site Zoopla. This marks a rebound from the previous year, when just 10.6 million homes experienced value increases.
On average, homes that gained value saw an uptick of £7,600 in their estimated worth, with 6.9 million properties going up by £10,000 or more.
The North East, one of the UK’s most affordable regions, saw some of the highest gains. Here, 70% of homeowners (around 820,000 properties) saw their homes increase in value by an average of £4,300. Also, one in five homeowners (270,000) saw their property value rise by £10,000 or more.
Peterlee in County Durham emerged as the area with the highest proportion of homes experiencing increased values, with 83% of properties seeing an average increase of £6,100.
The North West also saw strong growth, with 63% of homes recording increases of 1% or more, averaging £4,400. Cheshire towns like Congleton and Knutsford stood out, with six in ten homes seeing their values rise by £10,000 or more.
Read more: 9 new homes for a hassle-free move
Across Scotland and Yorkshire and the Humber, around 60% of homes gained in value. In Scotland, the town of Biggar registered some of the largest average value gains, with homeowners benefiting from a £19,300 increase in their property values. Similarly, Ripon in Yorkshire saw an average value increase of £15,700.
In contrast, the housing market in Southern England saw more mixed results. Just 36% of homes across the southern regions went up in price, with many areas seeing declines. On average, homes in the South saw a drop in value of £8,700, with 41% of properties registering negative changes.
Coastal towns in Kent and East Sussex were particularly hard-hit, with fewer than 10% of homes climbing in value. More than three-quarters of properties in these areas recorded small declines. Analysts suggest the fading of the pandemic-driven housing boom — when many sought larger homes and more space —has contributed to this downturn.
Additionally, rising council tax rates for second homes, set to double in April 2025, are putting downward pressure on property values in coastal areas popular with second-home owners.
Story continues
Richard Donnell, executive director at Zoopla, warned that while the housing market as a whole has returned to growth, the distribution of value changes across the country is far from uniform.
“There is room for price growth in markets where housing remains affordable relative to incomes, which is the case in many parts of northern England and Scotland,” he said.
“In contrast, affordability constraints are more pronounced in Southern England, where the market is still adjusting to higher borrowing costs.”
Donnell added that improving incomes and falling mortgage rates in 2024 have begun to ease affordability issues, particularly in Southern England. T
his has supported value increases in regions like Wiltshire, Gloucestershire, and Oxfordshire, where half of all homes saw a rise in value. In Berkhamsted, Hertfordshire, the largest national annual value increase occurred, with homeowners seeing an average increase of £24,500 in their property values.
Looking forward, Donnell believes that faster income growth will continue to improve housing affordability, particularly in the South. As the market adjusts to higher borrowing costs, he expects value growth to continue in certain regions, with more homeowners likely to make moving decisions in 2025.
Read more: What will the UK housing market look like in 2025?
Meanwhile, separate data showed that the average house seller in England and Wales last year sealed the deal for £91,820 more than they had originally paid for their property.
In percentage terms, the average seller made a 42% gross profit, which was the lowest return since at least 2015, when records started, property firm Hamptons said. On average, sellers had owned their property for just under nine years.
In cash terms, the average gross profit made by sellers in 2024 was £10,830 lower than 2023 and down from a peak of £112,930 in 2022 when strong house price growth pushed gross gains (before costs were factored in) into six figures for the first time in the study.
Despite lower price gains last year, around nine in 10 (91%) households are estimated to have achieved more than they paid.
House sellers saw more than double the percentage gains recorded by those selling a flat last year, according to the research.
The average house sold in 2024 for 47% more than its purchase price, while the average flat sold for 23% more. The average price gain made by house sellers in London last year fell below £200,000 for the first time since at least 2015.
Download the Yahoo Finance app, available for Apple and Android.