UK house prices hit new record high of £298,083 in November, says Halifax

The average house price in the UK reached a new record high of £298,083 in November, according to an index.

Halifax reported that property values increased by 1.3% month-on-month, marking the fifth consecutive rise. Year-on-year, house prices saw a 4.8% increase in November, up from 4% growth in October.

Amanda Bryden, Halifax’s head of mortgages, commented: “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.”

She added: “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.”

Ms Bryden continued: “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.”

According to Halifax, Northern Ireland continues to see the strongest property price growth, with values increasing by 6.8% annually.

The North West has outshone all other regions in England, boasting the strongest growth in house prices with a 5.9% surge.

In contrast, Scotland’s housing market experienced a more subdued increase, with house prices climbing by 2.8% annually.

Nathan Emerson, chief executive of Propertymark, commented: “With interest rates now easing, many buyers will have increased confidence to approach the housing market.”

He also predicted a rise in property listings and home movers, particularly in England and Northern Ireland, as they rush to complete transactions before stamp duty hikes kick in from April 2025.

The temporary stamp duty thresholds are due to expire in April, resulting in the “nil rate” band for first-time buyers dropping from £425,000 to £300,000.

Tom Bill, head of UK residential research at Knight Frank, said: “An increase in borrowing costs and the disappearance of sub-4% mortgages in recent weeks means we expect downwards pressure on house prices to intensify next year.”

He added that the current robustness is somewhat fleeting, as many buyers are trying to get ahead of the stamp duty rise next April. With the possibility of inflation and mortgage rates remaining high for an extended period, Knight Frank has revised its UK house price forecasts downward for the coming three years.

Mr Bill concluded that growth would seem more sustainable once the economy is decisively on an upward trajectory.

Mortgage expert at wealth manager Quilter, Karen Noye, said: “Recent data from the Bank of England has already pointed to rising mortgage approvals, which reached their highest level since mid-2022.

“Combined with a reduction in quoted mortgage rates, this suggests that buyers are returning to the market, encouraged by the more favourable lending conditions. However, affordability remains a critical issue, particularly for first-time buyers who are still grappling with high borrowing costs and larger deposit requirements, factors that have constrained demand over the past year.”

Recoco Property Search’s Nigel Bishop observed: “There has been a general uplift in buyer demand in November which impacted on property values and enabled some sellers to achieve their asking price.”

Jeremy Leaf, an estate agent from north London, described the market situation: “Demand continues to be strong, particularly for competitively-priced homes in lower-value areas.”

However, he noted: “Investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes. On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage.

“That has also given a lift to the rest of the market by releasing second-steppers and connecting chains. However, buyers are taking their time before committing as affordability concerns remain.”

Here are average house prices in November and the annual increase, according to Halifax. The regional annual change figures are based on the most recent three months of approved mortgage transaction data:

• East Midlands stands at £242,282 with a 3.5% increase.
• Eastern England sees £335,063 with growth of 3.6%.
• London’s figure is £545,439, up by 3.5%.
• North East has £175,737, climbing by 4.4%.
• North West is at £237,045, jumping up by 5.9%.
• Northern Ireland boasts £203,131, with a standout 6.8% rise.
• Scotland lists £208,957, with a more modest 2.8% hike.
• South East reports £388,534 and a 3.4% positive change.
• South West shows £304,558, with a 3.7% increase.
• Lastly, Wales comes in at £225,084, marking a 4.1% gain.
• West Midlands, £257,982, 5.5%.
• Yorkshire and the Humber, £212,385, 4.7%.