House costs attain new file excessive as common house price £15k greater than a 12 months in the past

House prices rose for the fifth month in a row in November, according to the latest figures from Halifax.

The mortgage lender recorded the biggest monthly increase of the year in November with average prices rising 1.4 per cent.

Annually, house prices are up 4.8 per cent – or £14,468 – the strongest level since November 2022.

It means that house prices have hit a new record high with the typical home now costing £298,083, according to Halifax compared to £283,615 in November 2023. 

Amanda Bryden, head of mortgages at Halifax, says the increase is down to greater demand, which is being driven by rising wages and the expectation of future interest rate cuts.

‘Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence,’ said Bryden.

‘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.’

Halifax’s figures present a more positive picture than that of Nationwide Building Society and Zoopla.

On a year-on-year basis, Nationwide said that house prices were up 3.7 per cent. However, it also said that prices remain 1 per cent below the all-time peak recorded in summer 2022 before interest rates began heading upwards. 

Meanwhile, Zoopla said that house prices went up by just 1.5 per cent over the past 12 months.

The difference is down to the fact that Halifax and Nationwide base their figures on their own mortgage lending, while Zoopla uses sold prices, mortgage valuations and data for agreed sales. 

Jeremy Leaf, north London estate agent and a former Rics residential chairman, said: ‘The market is showing its teeth, despite the extra Budget taxes in particular reducing the likelihood of early cuts in mortgage cuts and prospect of slower wage growth. 

‘Demand continues to be strong, particularly for competitively-priced homes in lower-value areas.

‘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.’

Despite the bumper growth reported by Halifax, some within the property industry think future growth in house prices will slow, rather than accelerate from here.

Tom Bill, head of UK residential research at Knight Frank said: ‘The impact of Labour’s Budget is still in the post for the UK housing market. 

‘An increase in borrowing costs and the disappearance of sub-4 per cent mortgages in recent weeks means we expect downwards pressure on house prices to intensify next year. 

‘This sense of temporary strength is reinforced by the fact many buyers are acting ahead of a stamp duty increase next April. 

‘The risk that inflation and mortgage rates stay higher for longer means we recently revised down our UK house price forecasts for the next three years. 

‘Growth will feel more sustainable once the economy is heading decisively in the right direction.’

Northern Ireland sees biggest house price rises 

All regions of the UK have seen prices rise over the past 12 months, according to Halifax’s data. 

Northern Ireland continues to record the strongest property price growth, rising by 6.8 per cent on an annual basis in November. Homes in Northern Ireland now cost an average of £203,131.

House prices in Wales also recorded strong growth, up 4.1 per cent, compared to 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 up 5.9 per cent compared to the previous year, with properties now costing an average of £237,045.

Properties in the West Midlands also saw strong growth, increasing 5.5 per cent year-on-year to an average house price of £257,982.

Scotland saw a more modest rise in house prices compared to the rest of the UK, with home values 2.8 per cent more than the year before.

London retains the top spot for the highest average house price in the UK, at £545,439, up 3.5 per cent compared to last year.

Jonathan Hopper, chief executive of buying agency Garrington Property Finders said: ‘Hesitation has turned to hurry in some parts of the market, especially among first-time buyers racing to complete their purchases before the stamp duty thresholds change at the end of March,’ said Hopper.

‘This sense of urgency is prompting some buyers to view in haste and offer high in order 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 hold down their asking prices and accept lower offers for much of this year as the supply of homes for sale outstripped demand.’