#32 Average house price hits record high of ￡298,083
UK house prices experienced their fastest monthly increase of the year in November, with further rises anticipated next year, according to Halifax.
As part of Lloyds Banking Group, Halifax reported that property values climbed by 1.3% from October, marking the fifth consecutive monthly increase. This brought the average house price to a new record high of ￡298,083, surpassing October’s peak of ￡293,999.
On an annual scale, house prices saw the strongest growth in two years, rising by 4.8% in November compared to a year earlier, up from October’s 4% growth rate. This aligns with findings from rival lender Nationwide earlier in the week.
Halifax attributed the growth to a combination of increased buyer demand and the comparatively weaker market conditions of the previous year.
"Recent data highlights growing demand for mortgages, with lower mortgage rates bolstering buyer confidence," said Amanda Bryden, Halifax’s head of mortgages. She further noted that improving employment levels and reduced interest rates are expected to drive house prices higher into next year. However, she cautioned that affordability challenges and an unpredictable economic environment could test buyer confidence.
Jonathan Hopper, CEO of Garrington Property Finders, observed that first-time buyers are rushing to complete purchases ahead of upcoming stamp duty threshold changes. Similarly, Alice Haine, personal finance analyst at Bestinvest, believes the stamp duty adjustments are contributing to the price surge, predicting a quieter market after April as buyers opt for less expensive properties.
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Halifax’s data is drawn from its mortgage lending, excluding cash purchases and buy-to-let transactions. Cash buyers, who represent about a third of all housing sales, are not included in this analysis.
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