The property market is showing encouraging signs of being busy and thriving, according to new figures from Halifax.
House prices have gone up by 4.8% annually, compared to 4% last month, according to the lender. Halifax’s latest House Price Index, published on 6 December for November, revealed that prices have risen for the fifth consecutive month.
‘UK house prices rose for the fifth month in a row in November, up by 1.3% in the month – the biggest increase so far this year,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘This pushed the annual growth rate up to 4.8%, its strongest level since November 2022. As a result, the record average house price we saw in October edged higher still, with a typical property now costing £298,083.’
Greater demand for mortgages
Buyer demand has improved, and consumers have more confidence in the market, but some buyers still find it challenging to buy a property.
‘Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence,’ adds Bryden. ‘However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop.
‘As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand,’ adds Bryden. ‘This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.’
Regions with the biggest price growth
Northern Ireland is recording the strongest property growth of any UK region, with prices rising by 6.8% annually in November. The average property price in Northern Ireland is now £203,131.
Wales has also shown strong growth, up 4.1% compared to the previous year, with average properties now costing £225,084.
Other areas that saw strong growth included the North West, which increased by 5.9% annually (average house price of £237,045), and the West Midlands, which increased by 5.5% annually (average house price of £257,982).
Unsurprisingly, London remains the most expensive area for average house prices, with the average property price standing at £545,439, up 3.5% compared to last year.