The property website said asking values had risen £3,900 on average during this period.
It is up from a drop of 1.2% on a year earlier.
All regions and countries across Britain have seen positive year-on-year growth in asking prices.
The fastest asking price gains were registered in Northern Ireland at 6.3% and the North West at 2.9%.
Affordability pressures
House price growth remains below 1% across the South of England.
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Zoopla said affordability pressures are an “ongoing drag” on house price growth in this region.
It predicted that the number of house sales would increase by 5% in 2025 to 1.15 million.
Sales agreed during the past four weeks are currently up 19% year-on-year.
Meanwhile, buyer demand was 25% higher during the same period.
Zoopla claimed that the sales market is on track for 1.1 million sale completions this year, which is 10% higher than in 2023.
It said postponed home moves, an ageing population, rising running costs and changing working patterns will continue to impact moving decisions, in addition to the desire to seek a better home or location.
First-time buyers will remain the largest buyer group, supporting housing chains and helping existing homeowners to move.
Overvalued properties
Last year, Zoopla said British homes were overvalued by 16% as a result of the jump in mortgage rates.
It explained that rising incomes and lower mortgage rates during this year have removed this overvaluation without the need for prices to fall further in 2024.
It means the housing market has largely adjusted to higher mortgage rates.
It forecast that house prices will increase by 2.5% in 2025, based on mortgage rates averaging 4.25% in the year ahead.
At the same time, the North/South divide in housing affordability will remain next year.
Affordability and access to housing are better outside of the South of England, where the income needed to buy remains high.
It means house prices in the Midlands, Northern England, Scotland and Wales are likely to outperform the British average, while home prices in the South of England will lag behind, Zoopla said.
Richard Donnell, executive director of Zoopla, said: “The housing market has been resilient in the face of higher borrowing costs over the last two years.
“Higher income growth and lower mortgage rates have helped reset housing affordability faster than many expected over 2024.
“This has supported an increase in the number of sales and house prices over the year, which we expect to continue over 2025.”
He continued: “House price growth in Southern England will continue to lag the UK average and incomes will need to rise faster than prices to help reset affordability and price more households into the market.
“First-time buyers will remain an important buyer group, but existing homeowners looking to move will need more support to help realise their ambitions, with more and more having to look further afield to find better value for money.”
Simon Gerrard, managing director of Martyn Gerrard Estate Agents, said: “2024 has been something of a mixed year for the housing market, but despite its ups and downs, the market’s resilience has meant property prices have held firm even in face of change and adversity. It’s therefore no surprise that 2025 is forecast to kick off with growth across the country, and we’re expecting the year ahead to see a busier market with increased buying activity.
“In the immediate term, we can expect activity to be especially high amongst first-time buyers, who will be mindful of the increase to stamp duty that was hidden in Labour’s Autumn Budget and will come into effect as of the 1st of April. This will especially impact first-time buyers, and so it is imperative that those looking to get on to the property ladder, especially in London, do so before this tax hike occurs.
“Looking further ahead, as interest rates trickle down over the course of next year, we should also see people who have held off on their property search this year drive it back into action, resulting in a higher number of enquiries and purchases at every level of the market. Overall, the turbulence of 2024 looks set to give way to a fast-paced and exciting year for the property market in 2025.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Average asking prices for houses rise 1.5% to £267,000, says Zoopla
