Annual growth strongest for two years
House prices increased for the fifth consecutive month in November, according to Halifax.
The bank’s most recent house price index showed that the average property price in the UK stood at £298,083 in the month, 1.3% higher than October.
Prices were up 1.4% on a quarterly basis and 4.8% annually. This annual rate was the strongest level since November 2022.
“Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence,” said Amanda Bryden, head of mortgages at Halifax.
“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.”
Northern Ireland once again recorded the strongest annual house price growth of any part of the UK.
Responding to the figures, Nick Gunga, managing director at Purplebricks, said there were “certainly reasons to be optimistic about the strength of the market”.
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“However, a turbulent economic environment, combined with policy changes and the full impact of the Autumn Budget, means progress is still on uneven footing,” he said, adding that it was likely that market activity would “continue to fluctuate in response to the changing landscape.
Benham and Reeves director, Marc von Grundherr, was more enthused, describing it as “full speed ahead” following the Autumn Budget.
“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,” he said.
“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.”
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