Average house price rises to hit record high say Halifax as they release their latest property data.
House prices increased by +1.3 per cent in November, a fifth consecutive monthly increase and property prices are up +4.8 per cent on an annual basis (vs +4.0% last month). Typical property now costs £298,083, a new record for the UK.
Northern Ireland continues to record the strongest annual house price growth in the UK rising by +6.8 per cent on an annual basis in November. Properties in Northern Ireland now cost an average of £203,131.
House prices in Wales also recorded strong growth, up +4.1 per cent, compared to the previous year, with properties now costing an average of £225,084.
House prices in the North West recorded the strongest growth of any region in England, up +5.9 per cent, 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 per cent 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 per cent 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 per cent 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 ago.”
Nathan Emerson, CEO of Propertymark comments on Halifax’s latest House Price Index:
“We have seen an encouraging transformation across the year in terms of a resilient trend of house price growth. Affordability and overall confidence in the sector have also seen a boost throughout the year so far, and with interest rates now easing, many buyers will have increased confidence to approach the housing market. We are, however, likely to see a spike in homes for sale and those looking to move home, especially across England and Northern Ireland trying to complete before the rises to Stamp Duty commence from April 2025.”
Nicky Stevenson, Managing Director at national estate agent group Fine & Country, said: “The housing market continues to show strong growth despite challenges from the Autumn Budget and inflation, with resilience fueling 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.
“It’s not uncommon to witness a flurry of activity following shifts in policy or economic indicators, as those impacted make quick decisions to mitigate potential costs. However, looking forward, tax increases following the Budget could weaken buyer purchasing power, and economic uncertainty has caused some of the most competitive mortgage rates to vanish.
“While tax increases and rising prices — with inflation now sitting at 2.3% — may prompt some consumers to tighten their belts in the new year, experts remain optimistic about the housing market’s trajectory. Zoopla forecasts a 2.5% rise in house prices and a 5% increase in transactions by 2025. First-time buyers are expected to be a key driver of this growth, supported by improving affordability from higher incomes and lower mortgage rates.
“With these factors in play, the housing market enters 2025 with renewed momentum and a positive outlook, signaling continued growth despite headwinds.”
