Home Money House prices hit new record – average home was worth £15k more than a year ago

House prices hit new record – average home was worth £15k more than a year ago

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Record highs: average home value now just shy of £300,000, says Halifax

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

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.” .

How to find a new mortgage

Borrowers who need a mortgage because their current fixed-rate agreement is ending or because they are buying a home should explore their options as soon as possible.

Quick mortgage search links with This is Money partner L&C

> Mortgage rate calculator

> Find the right mortgage for you

What happens if I need to remortgage?

Borrowers should compare rates, talk to a mortgage broker and be prepared to take action.

Homeowners can close a new deal six to nine months in advance, often with no obligation to accept it.

Most mortgage agreements allow fees to be added to the loan and are only charged when requested. This means borrowers can get a rate without paying expensive processing fees.

Please note that by doing this and not paying off the fee upon completion, interest will be paid on the fee amount for the entire term of the loan, so this may not be the best option for everyone.

What happens if I am buying a house?

Those with agreed-upon home purchases should also try to lock in rates as early as possible, so they know exactly what their monthly payments will be.

Buyers should avoid overreaching and be aware that home prices may fall as higher mortgage rates limit people’s borrowing capacity and purchasing power.

How to compare mortgage costs

The best way to compare mortgage costs and find the right deal for you is to speak to a broker.

This is Money has a long-standing partnership with free broker L&C, to provide you with free, expert mortgage advice.

Interested in seeing today’s best mortgage rates? Wear This is the best mortgage rate calculator from Money and L&C to show offers that match your home value, mortgage size, term, and fixed rate needs.

If you’re ready to find your next mortgage, why not use L&C’s Online Mortgage Finder? It will search thousands of offers from over 90 different lenders to discover the best deal for you.

> Find your best mortgage deal with This is Money and L&C

However, please note that rates can change quickly, so if you need a mortgage or want to compare rates, speak to L&C as soon as possible so they can help you find the right mortgage for you.

Mortgage service provided by London & Country Mortgages (L&C), which is authorized and regulated by the Financial Conduct Authority (registration number: 143002). The FCA does not regulate most buy-to-let mortgages. Your home or property can be repossessed if you don’t keep up with your mortgage payments.

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