The 海角视频 housing market saw a return to growth last year as mortgage rates fell and affordability constraints eased, according to property experts Savills.
The total value of the 海角视频 housing market grew by 6.3 per cent in 2024 to £379bn, as reported by .
This surge in house buying was driven by first-time buyers, who collectively increased their mortgage debt by £12.2bn, or 21.4 per cent.
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"The rise in first-time buyers reflects the overwhelming desire of Britons to get a foot on the housing ladder," said Lucian Cook, head of residential research at Savills.
He added: "Especially given the lack of choice in the private rented sector, and the double-digit rental growth tenants have experienced over the past few years."
However, house prices remain high compared to average earnings, with the first-time buyer (FTB) house price-to-earnings ratio standing at 5.0 at the end of 2024, significantly above the long-term average of 3.9.
This has made the deposit hurdle exceptionally high, exacerbated by the rental crisis, during which rents have risen far faster than wages.
Despite this, those who have managed to accumulate a deposit have "continued to take the plunge, despite higher house prices and mortgage rates," Cook stated.
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Yet, the ongoing affordability constraints mean that house buying was primarily fuelled by debt last year, with a £22.3bn increase in spending on house purchases matched with a £24.3bn increase in the use of mortgage debt, according to Savills.
Market expected to maintain momentum post stamp duty change.
The surge in spending, largely driven by first-time buyers, had led many experts to predict a slowdown in the housing market after the stamp duty relief for first-time buyers ends on April 1.
However, Marc von Grundherr, director of Benham and Reeves, stated that the general consensus now is that "growing momentum will continue to build beyond April 1 and we look set for another year of positive growth."
Cook further noted that an increase in activity among home movers would be "heavily dependent on further cuts in interest rates and an improvement in consumer confidence."
Analysts at Capital Economics forecast that the Bank of England will reduce interest rates to 3.5 per cent by early 2026, which could significantly stimulate activity.
Meanwhile, Britons' confidence improved in February due to better personal finances and a more optimistic outlook on the overall economy.