"On an annual basis, house prices have continued to climb for the last eight months and it’s now full steam ahead where the property market is concerned"
- CEO of Yopa, Verona Frankish
Average UK house prices increased by 3.3%, to £290,000, in the 12 months to November 2024, up from 3.0% in the 12 months to October, according to the latest UK House Price Index from the Land Registry.
Annual inflation has been generally increasing since its low point of -2.7% in the 12 months to December 2023.
Average house prices increased by 3.0% in England, 3.0% in Wales, and 4.7% in Scotland.
The North East was the English region with the highest house price inflation in year to November at 5.9%, up from 4.6% in October.
Annual house price inflation was lowest in London, with a decrease of 0.1%, compared to a decrease of 0.4% in October.
On a non-seasonally adjusted basis, average UK house prices decreased by 0.4% between October and November, compared with a decrease of 0.7% in the same period 12 months ago. On a seasonally adjusted basis, average house prices in the UK increased by 0.1% between October and November.
CEO of Yopa, Verona Frankish, commented: “The November figures show a marginal reduction in the monthly rate of house price growth, which is to be expected in the run up to Christmas. However, on an annual basis, house prices have continued to climb for the last eight months and it’s now full steam ahead where the property market is concerned, as homebuyers across England look to beat the stamp duty deadline.
"We’ve seen many times before how a sense of urgency drives demand across the market and the result of this heightened buyer activity is likely to be further house price growth over the coming months.”
Co-founder and CEO of GetAgent, Colby Short, said: “The annual rate of house price growth was stronger than expected in November and there’s no doubt that the government’s decision not to extend current stamp duty relief thresholds is helping to drive this trend.
"We’ve seen previously how a stamp duty deadline induced surge in demand can drive market performance and the expectation is that we will see strong growth over the first three months of this year.
"Once the clock does expire on current relief thresholds there will almost certainly be a market correction, most likely in the form of reduced transaction numbers and weaker rates of house price growth.
"However, the industry-wide view is that the impact of this stamp duty deadline will be far more marginal compared to previous examples and so the consensus is that 2025 will be a year of overarching stability and positive growth.”
Josh Skelding, commercial director at Fignum, added: “Today’s data is an encouraging sign that the housing market is gaining momentum. Despite the typical seasonal slowdown at the end of last year, house prices have defied expectations. Buyers are racing to finalise deals before the April 2025 stamp duty threshold changes, hopefully prompting a surge in new year transactions. Although the Bank of England may lower borrowing costs more cautiously than previously anticipated, rates are still well below their peak last summer. The market is also benefitting from the effects of pent-up demand following the Autumn Budget, painting a positive picture for the market as it stands.
“That said, challenges remain that could dampen this progress. The recent sell-off in government bonds, triggered by inflation concerns, could see nearly 700,000 homeowners facing higher mortgage payments as their fixed-rate deals expire this year. Swap rates have risen sharply, adding to pricing pressures for lenders. While it’s unclear if these trends will persist, they are already impacting the broader lending environment.
“Affordability is another major concern, with borrowers potentially facing greater financial strain as businesses respond to the upcoming National Insurance increase by raising prices. In this environment, lenders have an important role to play in proactively supporting their customers. Adopting innovative technology, such as cloud-based solutions that enable tailored financial products, will be essential to meeting the evolving needs of today’s borrowers.”