Average Property Value Hits £298,083 Amid Strong Demand and Falling Mortgage Rates
The UK housing market continues to show resilience, with house prices rising at their fastest monthly rate of the year in November, according to the latest data from Halifax, the UK’s largest mortgage lender. The average house price reached a new record high of £298,083 last month, surpassing the previous peak of £293,999 in October.
Annual House Price Growth Strongest in Two Years
In addition to the strong monthly growth, house prices have also seen the fastest annual growth in two years. Halifax reported that house prices increased by 4.8% in November compared with a year earlier, up from 4% growth in October. This reflects both the current demand from buyers and the relative weakness of the market a year ago.
Amanda Bryden, head of mortgages at Halifax, attributed the growth to improving levels of demand for mortgages, driven by an easing in mortgage rates and increased buyer confidence. She expects further house price rises for the remainder of this year and into next year, supported by stronger employment and falling interest rates.
Affordability Challenges and Economic Uncertainty Remain
Despite the positive outlook, Bryden cautioned that many potential buyers and movers still face significant affordability challenges, and buyer confidence may be tested against a changeable economic backdrop. This sentiment was echoed by Jonathan Hopper, chief executive of Garrington Property Finders, who noted that 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.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, also believes that the rise in house prices is linked to stamp duty concerns. She expects property prices to rise in the run-up to the deadline as buyers and sellers race to beat the tax hike, but predicts a more muted market beyond the start of April as buyers choose to purchase cheaper homes.
Regional Variations in House Price Growth
The Halifax data reveals significant regional variations in house price growth across the UK. London remains the most expensive place to buy a house, with the average property costing £545,439. Northern Ireland continues to record the strongest house price growth in the UK, with an average price of £203,131.
In England, the North West region saw the strongest growth, with house prices increasing by 5.9% compared to last year, and an average property now costing £237,045. The West Midlands also experienced strong growth, with house prices up 5.5% on last year and an average home costing £257,982.
Scotland saw a more modest rise in house prices, with the average property now costing £208,957, representing a 2.8% increase compared to the previous year.
