House prices hit new record as average home price £15k more than a year ago

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

The mortgage lender recorded its biggest monthly increase of the year in November with average rates up 1.4 per cent.

Annually, house prices will rise by 4.8 per cent – or £14,468 – the strongest level since November 2022.

This means house prices have reached a new record high with a home now worth £298,083, compared to £283,615 in Halifax in November 2023.

Amanda Bryden, head of mortgages in Halifax, says the increase is down to more demand, driven by rising prices and the prospect of lower interest rates.

‘The latest figures continue to show an increase in the demand for mortgages, to make it easier mortgage rates boost customer confidence,’ says Bryden.

‘However, despite these positive trends, many buyers and sellers still face significant price challenges and consumer confidence will be tested in the changing economic environment.

‘As we move towards the end of the year and into 2025, positive employment figures are expected to decline interest rates the application is expected to continue to support.

‘This is underpinning house price growth, albeit at a slower pace as mortgage rates remain above the average of a few years ago.’

Halifax’s figures paint a better picture than those of the Nationwide Building Society and Zoopla.

On an annual basis, Nationally, home prices rose 3.7 percent. However, it also said that prices remain 1 percent below the all-time peak recorded in the summer of 2022. interest rates and headed up.

At this time, Zoopla said house prices rose by just 1.5 percent in the last 12 months.

The difference is that Halifax and Nationwide base their numbers on their own mortgages, while Zoopla uses sales prices, mortgage payments and data on approved purchases.

Jeremy Leaf, the north London estate agent and former Rics chairman, said: ‘The market is showing its teeth, despite the Treasury’s additional tax cuts and reduced risk of cut early on mortgage and expect rate growth to slow.

‘Demand remains strong, particularly for competitively priced homes in low-value areas.

‘Confirmation by the stamp duty the permission given is not extended to primary consumersespecially of those goods, to take advantage.

‘That has also lifted the balance of the market by offering secondary gears and associated chains.’

Despite the strong housing growth reported by Halifax, some in the property industry expect house price growth to slow rather than accelerate from here.

Tom Bill, head of UK residential research at Knight Frank, said: ‘The impact of the Labor Budget on the UK housing market is still there.

‘Rising mortgage rates and the loss of sub-4 per cent mortgages in recent weeks mean house prices are expected to fall further next year.

‘This short-term trend of strength is exacerbated by the fact that many consumers are working ahead of the stamp duty increase next April.

‘The likelihood that inflation and mortgage rates will remain higher for longer means we have revised down our UK house price forecasts for the next three years.

‘Growth becomes more sustainable when the economy is moving in the right direction.’

Northern Ireland has the biggest increase in house prices

All regions of the UK have seen price increases over the past 12 months, according to Halifax data.

Northern Ireland continues to record strong property price growth, rising 6.8 percent year-on-year in November. Homes in Northern Ireland now have an average price of £203,131.

House prices in Wales recorded strong growth, increasing by 4.1 per cent, compared to the previous year, with houses now costing an average of £225,084.

The North West has seen the biggest house price growth in England, with the average house increasing by 5.9 per cent compared to the previous year, with houses now costing an average of £237,045.

Property in the West Midlands saw strong growth, rising by 5.5 per cent year-on-year to a house price of £257,982.

Scotland saw a smaller rise in house prices compared to the rest of the UK, with house values ​​up 2.8 per cent on the previous year.

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

Jonathan Hopper, chief executive of sales firm Garrington Property Finders, said: ‘The anxiety has turned to speed in some areas of the market, particularly among primary consumers are racing to complete their purchases before the stamp duty thresholds change at the end of March,’ says Hopper.

‘This sense of uncertainty is prompting some buyers to check quickly and make a big offer to secure a home now and complete their purchase before the tax changes come into effect.

‘This is music to the ears of buyers, many of whom have been forced to hold their asking prices and accept low offers for much of this year as the supply of homes for sale on more than desire.’