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

  • House prices rose 1.3% in November with typical home now costing £298,083

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.

Record highs: The average home value is now within a whisker of £300,000, according to Halifax

‘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.

Jeremy Leaf, north London estate agent and a former Rics residential chairman

‘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.’

How to find a new mortgage

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

Quick mortgage finder links with This is Money’s partner L&C

> Mortgage rates calculator

> Find the right mortgage for you 

What if I need to remortgage? 

Borrowers should compare rates, speak to a mortgage broker and be prepared to act.

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

Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees.

Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. 

What if I am buying a home? 

Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. 

Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people’s borrowing ability and buying 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 fee-free broker L&C, to provide you with fee-free expert mortgage advice.

Interested in seeing today’s best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching 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 1,000’s of deals from more than 90 different lenders to discover the best deal for you.

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

Be aware that rates can change quickly, however, and 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 authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage