Average house prices in the UK reached a record high in November to £298,083, Halifax’s house price index reveals.
The latest data shows that house prices went up for the fifth consecutive month, rising 1.3% which marks the biggest increase so far this year.
Meanwhile, property prices are up 4.8% on an annual basis compared to 4% the month prior. The latest figures is the strongest
Data found that Northern Ireland continues to record the strongest property price growth of any nation or region in the UK.
House prices went up by 6.8% on an annual basis in November with the average property now costing £203,131.
Halifax head of mortgages Amanda Bryden says: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence.”
“However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop.”
“As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand.”
“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Fine and Country managing director Nicky Stevenson states: “The housing market continues to show strong growth despite challenges from the Autumn Budget and inflation, with resilience fuelling hopes for a strong year-end finish.”
“Market activity typically slows at this time of year as buyers rush to finalise moves before Christmas or pause their plans to focus on the festive season. However, this rise in house prices — both monthly and year-on-year — suggests a shift, with many buyers forging ahead.”
“This surge may be driven by a desire to complete transactions ahead of the tax increases announced by the Chancellor in October. Nationwide’s November House Price Index confirms this trend, showing the fastest annual price growth in two years at 3.7%.”
“One key change impacting homebuyers is the adjustment to stamp duty, coming in April 2025. The current £250,000 threshold for home movers will revert to £125,000, while the first-time buyer exemption will drop from £425,000 to £300,000.”
April Mortgages director Rachael Hunnisett adds: “The property market’s hot streak goes on as it records its fifth consecutive month of growth, demonstrating the industry’s resilience to change.”
“Prices are rising at their fastest annual rate for two years, supported by a steady increase in mortgage approvals.”
“Borrowers have shrugged off last month’s spike in inflation and the recent Budget uncertainty to press ahead with their homebuying plans.”
“Although market activity often slows in the run up to Christmas, the signs point to a busy winter period as homeowners rush to beat April’s stamp duty deadline.”
“Over the longer-term, homeowners’ ability to move up the property ladder will rest on the direction of interest rates.”
“Despite two rate cuts by the Bank of England this year, they remain well above their long-run average and with house prices creeping back up, affordability pressures could continue to bite.”
“The longer the current economic uncertainty goes on, the harder borrowing decisions will become for homeowners, who should avoid making assumptions based on speculation.”
