Government data shows the average UK house price increasing by 10% on an annual basis in November.
On a monthly basis, prices went up by 1.2%. This saw the average house price in the UK hit £270,708.
In England, the data shows, an annual rise of 9.8% left the average property price at £288,130 and, in Wales the respective figures came to 12.1% and £199,877.
Meanwhile, in London, a 5.1% annual rise took the average property price to £519,934. This was the lowest annual growth recorded in all regions in England.
Quilter mortgage expert Karen Noye says: “We are currently at an interesting juncture. Headlines are reporting that the worst of the pandemic is behind us and life is likely to finally make a return to normality, particularly as the government is rumoured to soon change its Plan B rules and put office work back on the table.
“How such a change would translate into people actually returning to the office is yet to be seen, but if a shift were to take place then the race for space we have witnessed in recent times may well be halted and could help to finally stall house price growth – particularly if this were alongside an interest rate hike.
“While house price growth may eventually start to slow, at the moment the housing market is defying everyone’s expectations. Many had hoped that with the stamp duty holiday drawn to a close, the market would finally ease off and prices would start making their way back down to earth, yet this does not seem to be the case.
“Buying a home in these times will be out of reach for many, particularly as even if there were to be a slowing of growth, it would likely be very gradual.”
Noye concludes: “Those holding out hope for a dip in prices following the stamp duty holiday removal will be disappointed. Rising mortgage rates, alongside inflated house prices and the seemingly ever-increasing cost of living will make buying a new home even more challenging.”
James Pendleton property expert Lucy Pendleton says: “The way property price growth strengthened on an annual basis underlines the fact that this is a rally with a very long tail. However, the headwinds that will undoubtedly slow the market later this year are already staring us in the face.
“This is the same month that wages dropped in real terms for the first time in over a year, mortgage approvals aren’t outstripping historic averages any more and, if inflation hits a decade high of 6% by April as expected, it will have doubled in just seven months. All this indicates the days of annual growth stretching into double figures are numbered.
“Official suggestions that these levels of inflation are a blip are a distant memory and first-time buyers, in particular, are all too aware of that.
“It’s no wonder they’re still clambering onto the housing ladder in large numbers while they still can. For a minority of them it may be now or never. If first-time buyer affordability is stretched any further, this will also have significant ramifications for the wider market over the coming year.”
And Peak Mortgages and Protection managing director Rhys Schofield adds: “As absurd as this may sound, there’s every chance house prices will continue their record-breaking push upwards in 2022.
“The reason for this is that the estate agents we work with are getting multiple offers on every house they sell and if demand outstrips supply, prices are only going one way this year. Unless we build more houses, which no government seems able to pull off, there doesn’t seem much that can stop the runaway house price train.”
