Savills revealed that the UK housing market grew 6.3% to £37.9 billion in 2024.
Data shows that this is equivalent to a £1.1 million deal with an average selling price of £343,822.
Market growth is said to be driven by an increase in home purchase spending of £22.3 billion.
Home purchase spending increased by £22.3 billion, due to the increase in use of mortgage debt. This is an increase of 18.1% from the previous year.
But while the lowered shares of mortgage buyers rose £6.3 billion (9.5%), cash buyers’ spending fell £8.4 billion (5.4%), meaning cash and stocks fell to 58% of total housing spending.
The biggest increase in mortgage debt was first-time home buyers, with total buyers up 21.4 per cent to a total of £122.2 billion, due to higher transaction levels and a slight easing average loan-to-value.
“As the steady return to the mortgage market, the total spending on buying a home in the UK has shifted to positive territory,” said Lucian Cook, head of residential research at Savills.
“While the total size of the housing market is below its pandemic peak, it is higher than the pre-pandemic £36 billion.”
“The further reduction in interest rates expected this year will mean that the range of buyers entering the market will be expanded and we can expect to see their spending capacity increase over the next 12 months.”
