Average house prices rise for fifth consecutive month to hit new record high: Halifax

"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"
- Amanda Bryden - Halifax

The latest data released by Halifax has revealed that the price of a typical home in the UK increased by +1.3% in November - a fifth consecutive monthly increase.

The pace of house price growth has also increased with property prices up +4.8% on an annual basis compared to +4.0% last month.

Average UK house prices now stand at £298,083 - a new record, according to Halifax.

National and regional breakdown

Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by +6.8% on an annual basis in November. Properties in Northern Ireland now cost an average of £203,131.

House prices in the North West recorded the strongest growth of any region in England, up +5.9%, 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% on an annual basis to an average house price of £257,982.

Once again Scotland saw a more modest rise in house prices compared to the rest of the UK, property here now costs £208,957, +2.8% 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% compared to last year.

Amanda Bryden, Head of Mortgages, Halifax, said: “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. 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.

“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."

Tom Bill, head of UK residential research at Knight Frank commented: “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% 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 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.”

Nathan Emerson, CEO of Propertymark comments: “We have seen an encouraging transformation across the year in terms of a resilient trend of house price growth. Affordability and overall confidence in the sector have also seen a boost throughout the year so far, and with interest rates now easing, many buyers will have increased confidence to approach the housing market.

"We are, however, likely to see a spike in homes for sale and those looking to move home, especially across England and Northern Ireland trying to complete before the rises to Stamp Duty commence from April 2025.”

Nick Gunga, Managing Director at Purplebricks said: “After five consecutive monthly rises in UK house prices, most recently at the fastest rate in two years, there are certainly reasons to be optimistic about the strength of the market. However, a turbulent economic environment, combined with policy changes and the full impact of the Autumn Budget, means progress is still on uneven footing.

"This is particularly true for first-time buyers, many of whom will now be captured by the reduced stamp duty tax threshold from April 2025. Rather than holding steady for the foreseeable future, it seems more likely that market activity will continue to fluctuate in response to the changing landscape.”