House prices rose for the fifth consecutive month in November, according to the latest figures from Halifax.
The mortgage lender posted its biggest monthly increase of the year in November, with average prices rising 1.4 percent.
On an annual basis, house prices rose by 4.8 per cent, or £14,468, the highest level since November 2022.
It means house prices have hit a new record and a typical house now costs £298,083, according to Halifax, compared to £283,615 in November 2023.
Halifax mortgage director Amanda Bryden says the increase is due to increased demand, driven by rising wages and the expectation of future interest rate cuts.
Record highs: average home value now just shy of £300,000, says Halifax
“The latest figures continue to show improving levels of demand for mortgages, as a reduction in mortgage rates boosts buyer confidence,” Bryden said.
‘However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested in a changing economic environment.
‘As we approach the end of the year and into 2025, positive employment figures and anticipated reductions in interest rates are expected to continue to support demand.
“This should underpin further house price growth, albeit at a modest pace, as borrowing costs remain above average from a few years ago.”
Halifax’s figures present a more positive picture than those of Nationwide Building Society and Zoopla.
Year on year, Nationwide said house prices rose 3.7 percent. However, he also said prices remain 1 percent below the all-time high recorded in the summer of 2022, before interest rates began rising.
Meanwhile, Zoopla said house prices have risen just 1.5 per cent in the past 12 months.
The difference is due to the fact that Halifax and Nationwide base their figures on their own mortgage loans, while Zoopla uses sales prices, mortgage valuations and agreed sales data.
Jeremy Leaf, a north London estate agent and former chairman of Rics residential, said: “The market is showing its teeth, although additional budget taxes particularly reduce the likelihood of early cuts in mortgage cuts and the prospect of slower wage growth.
‘Demand remains strong, particularly for competitively priced homes in lower value areas.
‘Confirmation that the stamp duty concession will not be extended has given first-time buyers, especially of these types of properties, the opportunity to take advantage.
Jeremy Leaf, North London estate agent and former Residential Chairman of Rics
“This has also given a boost to the rest of the market by launching second steps and connecting chains.”
Despite the excellent growth reported by Halifax, some within the property industry believe that future house price growth will slow, rather than accelerate, from now on.
Tom Bill, head of UK residential research at Knight Frank, said: ‘The impact of the Labor budget is still on the UK property market.
‘A rise in borrowing costs and the disappearance of sub-4 per cent mortgages in recent weeks means we expect downward pressure on house prices to intensify next year.
‘This sense of temporary strength is reinforced by the fact that many buyers are acting ahead of a stamp duty rise next April.
‘The risk of inflation and mortgage rates remaining high for longer means we recently revised downwards our UK house price forecasts for the next three years.
“Growth will feel more sustainable once the economy heads decisively in the right direction.”
Northern Ireland sees biggest house price increases
According to data from Halifax, all regions of the UK have seen prices rise over the past 12 months.
Northern Ireland continues to record the strongest growth in house prices, with an annual increase of 6.8 per cent in November. Houses in Northern Ireland now cost an average of £203,131.
House prices in Wales also recorded strong growth, up 4.1 per cent on the previous year, with properties now costing an average of £225,084.
The North West has seen the biggest house price growth in England, with the typical home increasing by 5.9 per cent compared to the previous year, and properties now costing an average of £237,045.
Properties in the West Midlands also saw strong growth, rising 5.5 per cent year-on-year to a median house price of £257,982.
Scotland saw a more modest rise in house prices compared to the rest of the UK, with house values up 2.8 per cent on the previous year.
London maintains the top spot for the highest average house price in the UK, at £545,439, an increase of 3.5 per cent compared to last year.
Jonathan Hopper, chief executive of buying agency Garrington Property Finders, said: “Hesitation has turned to rush in some parts of the market, especially among first-time buyers who are rushing to complete their purchases before the tax thresholds. bell will change at the end of March”. Hopper said.
‘This sense of urgency is prompting some buyers to rush in and bid high to secure a home now and complete their purchase before the tax changes take effect.
“This will be music to the ears of sellers, many of whom have been forced to keep their asking prices low and accept lower offers for much of this year as the supply of homes for sale outstripped demand.” .
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