Annual house price growth slowed in November, which is good news for first-time buyers, as affordability has improved.
House prices remained the same in November, according to Halifax. The lender’s latest House Price Index, published on 5 December, showed zero growth after a 0.5% price rise in October. The average property price is now £299,892.
‘Average house prices were broadly unchanged in November, edging up by £139 compared to October,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘Annual growth has slowed to 0.7%, the weakest rate since March 2024, though this largely reflects the base effect of much stronger price growth this time last year.’
Slower price growth may disappoint existing homeowners, but of course, it’s good news for first-time buyers. ‘Comparing property prices to average incomes, affordability is now at its strongest since late 2015,’ adds Bryden. ‘Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.’
North/South house price divide
Regional house price data shows a clear North/South divide, with the North performing well.
Northern Ireland remained the strongest-performing region in the UK, with average prices rising by 8.9% over the past year and the typical home now costing £220,716.
Scotland saw annual price growth of 3.7% in November, with average property prices there now at £216,781. In Wales, prices rose by 1.9% year-on-year to £180,939.
In the South, London prices fell by 1% in November, the South East by 0.3% and Eastern England by 0.1%. As you’d expect, London remains the most expensive UK area, with properties in the capital costing an average of £539,766.
Optimistic market predictions
Off the back of steady market activity, Halifax predicts property prices will grow gradually next year.
‘The latest figures from Halifax are encouraging, especially considering the recent market volatility and ongoing consumer concerns,’ says Les Pick, MB Associates’ Sales & Operations Director. ‘November’s Autumn Budget – as well as the speculation leading up to it – created a degree of hesitation, with many prospective buyers choosing to pause their property plans until the Chancellor’s announcement.
‘Despite this, we continued to see consistent activity across the local housing market. We remain confident that the current pent-up demand will translate into strong home-mover activity throughout 2026.’
The Bank of England is reviewing the base rate on 18 December, and while we can’t say for sure what will happen, there are predictions of a base rate reduction. This will be a further boost to the property market. We will keep you updated.
Call MB Associates on 020 8652 5240 for mortgage advice in Surrey (Cheam, Kingston, and Sutton).