Ross Turrell, Commercial Director at CHL Mortgages, said: “Today’s figures will provide investors with a little more festive cheer. In the face of challenging economic and political headwinds, the steady house price growth seen throughout 2024 highlights the enduring resilience of bricks-and-mortar investments in the UK. These figures reflect market activity during the uncertain lead-up to the Autumn Budget, so the fact that prices still grew should drive greater confidence and higher activity levels in the coming weeks.

“Looking ahead, there are plenty of reasons for optimism. For example, Nationwide predicts that house prices will rise by 4% in 2025, while Savills anticipates a 3.5% uptick in rental prices over the next 12 months. That said, with the Bank of England likely to hold the base rate tomorrow, property investors will need to consider their plans based on the current cost of borrowing. More positively, it is expected the Bank will cut rates multiple times in 2025, which should boost the market – this is supported by the fact that new buyer demand is up by 13%, according to Rightmove.

“As the market continues to grapple with a complex investment landscape, lenders must work closely with brokers to support growth. Enabling landlords to pursue new opportunities or better manage their existing portfolios will be crucial. This means providing brokers and borrowers not only with the right financial products but also the additional expertise and support they need to navigate an ever-changing market. If lenders adopt this approach, the market can start the new year on the front foot.”