Home Money House prices rose £10,000 in the year to November, official data shows

House prices rose £10,000 in the year to November, official data shows

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Upward trend: House prices rose 3.3% according to the latest ONS data, despite prices falling 0.4% in November
  • House prices accelerate in northern England but fall in London

House prices rose by £10,000 in the 12 months to November, according to official figures.

The average property price rose 3.3 per cent in the year to November 2024, according to the Office for National Statistics, despite a 0.4 per cent fall in the final month of that period.

The value of the average house was estimated to be £290,000 in November, up from £280,000 in November 2023.

Jonathan Hopper, chief executive of buying agency Garrington Property Finders, said: “The property market has started the New Year on a strong note with estate agents reporting an increase in interest from both buyers and sellers.”

‘But the drop in average prices in November serves as a sobering reminder to sellers of how much competition they face to find a buyer.

“While the annual figures still show a reassuring upward trajectory, the monthly data reveals just how high prices have become.”

Upward trend: House prices rise 3.3% according to the latest ONS data, despite prices falling 0.4% in November

Where did house prices increase the most?

The ONS figures are published late compared to other house price indices, but are considered more accurate because they are based on completed sales.

House prices rose the most in Northern Ireland, according to the ONS, where the average home rose 6.2 per cent year-on-year and is now worth £191,000.

In Scotland prices have risen by 4.7 per cent, while in both Wales and England prices have risen by 3 per cent on average.

Across all English regions, annual house price growth was highest in the North East, where prices rose 5.9 per cent in the 12 months to November 2024.

London was the English region with the lowest annual growth, with prices falling 0.1 percent in the 12 months to November 2024, after a huge monthly fall of 1 percent.

In fact, London was the only English region to see house prices fall in the 12 months to November 2024.

“Prices fell by 1 per cent in London during November, which may be a whiplash effect from the tax increases announced by the Chancellor in her Budget at the end of October,” Hopper added.

‘In the capital too prices fall annually, as price-sensitive buyers negotiate prices hard or look elsewhere.

Jonathan Hopper, chief executive of buying agency Garrington Property Finders

Jonathan Hopper, chief executive of buying agency Garrington Property Finders

“Regions where value is perceived as stronger are seeing prices rise rapidly.”

Prices in the north-east of England rose by 1.1 per cent in November alone and by 5.9 per cent year-on-year.

In the North West and Yorkshire and the Humber, annual price inflation was 5.7 per cent.

What’s next for house prices?

Looking ahead, most forecasts point to a similar outlook for house prices over the next 12 months.

Higher mortgage rates will continue to weigh heavily on what buyers can afford.

Karen Noye, mortgage expert at Quilter, said: ‘Despite the year-on-year gains, the monthly drop may signal early signs of buyer hesitancy amid wider economic uncertainty.

‘This uncertainty will be compounded by recent turmoil in bond markets which is putting upward pressure on mortgage rates. These dynamics are likely to be moderating demand, particularly among first-time buyers, who are already pressured by rising costs of living and tighter credit criteria.

Brokers are also reporting high stock levels, which could also help keep prices in check.

Having more options on the market is great for buyers looking to haggle and get a discount, but for sellers it can mean there are more homes to compete with.

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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