"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"
- Amanda Bryden - Halifax
The price of a typical home in the UK increased by +1.3% in November to stand at a new record high of £298,083.
The latest data released by Halifax has revealed that the pace of house price growth has also increased with property prices up +4.8% on an annual basis compared to +4.0% last month.
National and regional house price data
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by +6.8% on an annual basis in November. Properties in Northern Ireland now cost an average of £203,131.
House prices in the North West recorded the strongest growth of any region in England, up +5.9%, compared to the previous year, with properties now costing an average of £237,045.
Properties in the West Midlands also saw strong growth, increasing +5.5% on an annual basis to an average house price of £257,982.
Once again Scotland saw a more modest rise in house prices compared to the rest of the UK, property here now costs £208,957, +2.8% more than the year before.
London retains the top spot for the highest average house price in the UK, at £545,439, up +3.5% compared to last year.
Amanda Bryden, Head of Mortgages, Halifax, said: “UK house prices rose for the fifth month in a row in November, up by +1.3% in the month - the biggest increase so far this year. This pushed the annual growth rate up to +4.8%, its strongest level since November 2022. As a result, the record average house price we saw in October edged higher still, with a typical property now costing £298,083.
“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."
Director of Benham and Reeves, Marc von Grundherr, commented: “It’s full speed ahead following the Autumn Budget, with the monthly rate of house price growth in November the largest seen so far this year.
"It’s amazing what a little urgency can do and with stamp duty costs now set to increase from April next year, buyers are acting with a far greater degree of intent which is driving the market forward at pace.
"Of course, affordability remains an issue and many buyers are continuing to struggle with the high cost of securing a mortgage. However, what we are seeing is a measured return to health, driven by increasing buyer demand, which is very good news for sellers and the wider property market.”
CEO of Yopa, Verona Frankish, commented: “We’ve seen an immediate reaction from buyers following the Autumn Budget and this uplift in market activity is driving current house price performance, however, those who are keen to complete before stamp duty costs increase really need to be acting sooner rather than later.
"There is still time to get a sale over the line before April next year but the property purchasing process can be a complex one riddled with delays. Those who are currently house hunting need to be aware that they could well miss the deadline and so they need to factor in the potential increase in costs that this would bring.
"Stretching your budget to its maximum in order to secure a property at speed and ahead of other buyers may well work in the short term, but it could prove problematic if you are required to pay more in stamp duty having completed beyond 31st March next year.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “The continued increase in average house prices is surprising in light of the affordability challenges and reduced demand in some parts of the country.
“Those areas where there is limited stock to tempt buyers are seeing prices hold firm and indeed rising in some cases. Homes that are well-priced and well-presented continue to sell relatively quickly. Buyers may pause to assess the financial implications of a purchase but high-demand areas are likely to retain interest into the new year and beyond."
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “With the Bank of England Governor suggesting there may be four rate cuts next year, this will bring further cheer to hard-pressed borrowers who are struggling with affordability.
“The Bank of Mum and Dad continues to play a significant role in helping first-time buyers onto the housing ladder. With precious little in the Budget to encourage them, and the stamp duty holiday coming to an end in March 2025, this is not going to get any easier.
“With Swaps continuing to fall, the direction of travel of mortgage rates is downwards although it’s a slow, measured process. Borrowers looking for a mortgage should plan ahead as much as possible and speak to a whole-of-market broker to find the best deal available to them."
