This morning's housing data from HM Land Registry has revealed that the price of a typical UK home in November 2024 was £290,000 - £10,000 higher than 12 months earlier.
Average house prices in the 12 months to November 2024 increased in England to £306,000 (3.0%), increased in Wales to £219,000 (3.0%) and increased in Scotland to £195,000 (4.7%). The average house price increased in the year to Q3 (Jul to Sep) 2024 to £191,000 in Northern Ireland (6.2%).
On a non-seasonally adjusted basis, average UK house prices decreased by 0.4% between October 2024 and November 2024 compared with a decrease of 0.7% in the same period 12 months ago. On a seasonally adjusted basis, average house prices in the UK increased by 0.1% between October 2024 and November 2024.
Regional data
Of English regions, annual house price inflation was highest in the North East, where prices increased by 5.9% in the 12 months to November 2024. London was the English region with the lowest annual inflation, where prices decreased by 0.1% in the 12 months to November 2024. London was the only English region with negative annual inflation in the 12 months to November 2024.
“This data is a little historic but shows house prices continued to rise on an annual basis in November, with the average property price £10,000 higher than a year ago," noted Jason Tebb, President of OnTheMarket, adding "Two interest rate cuts in the second half of last year have had a positive knock-on effect on confidence, which the market relies so heavily on. With inflation dipping slightly to 2.5 per cent, it is heading back in the right direction albeit slowly, but if this trend continues it will ease pressure on the Bank of England to delay further rate reductions.
"Affordability remains a challenge with a number of lenders raising rates in recent days on the back of higher Swap rates but there has not been significant repricing. Sellers would be wise to take advice from their local agent and price sensibly if they want to successfully transact this year," he concluded.
Josh Skelding, Commercial Director at Fignum, said “Today’s data is an encouraging sign that the housing market is gaining momentum. Despite the typical seasonal slowdown at the end of last year, house prices have defied expectations.
"Buyers are racing to finalise deals before the April 2025 stamp duty threshold changes, hopefully prompting a surge in new year transactions. Although the Bank of England may lower borrowing costs more cautiously than previously anticipated, rates are still well below their peak last summer. The market is also benefitting from the effects of pent-up demand following the Autumn Budget, painting a positive picture for the market as it stands.
“That said, challenges remain that could dampen this progress. The recent sell-off in government bonds, triggered by inflation concerns, could see nearly 700,000 homeowners facing higher mortgage payments as their fixed-rate deals expire this year. Swap rates have risen sharply, adding to pricing pressures for lenders. While it’s unclear if these trends will persist, they are already impacting the broader lending environment.
“Affordability is another major concern, with borrowers potentially facing greater financial strain as businesses respond to the upcoming National Insurance increase by raising prices. In this environment, lenders have an important role to play in proactively supporting their customers. Adopting innovative technology, such as cloud-based solutions that enable tailored financial products, will be essential to meeting the evolving needs of today’s borrowers.”
