The UK housing market continues its upward momentum, with house prices rising at the fastest monthly rate of the year in November, according to the Halifax, part of Lloyds Banking Group.
Property values increased by 1.3% from October, marking the fifth consecutive monthly rise and pushing the average house price to a record £298,083.
This surge surpasses the previous peak of £293,999 recorded in October, driven by robust buyer demand and a relatively weaker market performance a year ago.
Annually, house prices grew by 4.8% in November compared to 4% in October, the strongest year-on-year growth in two years.
Halifax attributes the growth to increased mortgage demand, supported by falling mortgage rates and stronger employment figures, which have boosted buyer confidence. Experts predict further price increases heading into next year.
However, affordability challenges remain a concern for many prospective buyers, especially against a backdrop of economic uncertainty.
London: The capital remains the most expensive region, with average property prices at £545,439.
Northern Ireland: Leading in house price growth, the region saw an average price increase to £203,131.
North West England: The region recorded a 5.9% annual growth, with an average property costing £237,045.
West Midlands: Prices rose by 5.5%, bringing the average home cost to £257,982.
Scotland: Growth was more modest, with average prices rising by 2.8% to £208,957.
Rising property prices are partially attributed to the looming changes in stamp duty thresholds. Many first-time buyers and movers are rushing to complete purchases ahead of the adjustments, driving market activity.
Analysts anticipate a more subdued market following the April deadline as buyers may shift towards more affordable properties.
Halifax’s data, based on its mortgage lending, does not include cash buyers or buy-to-let transactions, which represent about a third of housing sales.
Despite these exclusions, the report highlights sustained resilience in the UK housing market, with signs of continued growth heading into 2024.
