House prices increased by 4.8% between November 2023 and November 2024, according to the Halifax House Price Index.
The average house price was found to be £298,083, a monthly change of +1.3%, or +1.4% quarterly.
House prices rose for the fifth month in a row, to its strongest level since the same month in 2022, with the monthly rise being the biggest increase so far in 2024.
Amanda Bryden, head of mortgages at Halifax, said: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boosts buyer confidence.
“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.
“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Reaction:
Gareth Lewis, managing director of specialist lender MT Finance:
“There’s definitely evidence of positivity in the housing market, with an increase in purchases and activity as well as prices.
“While this is all encouraging, we still have a long way to go before the market is operating at its full potential.
“What is required is a better balance of supply and demand, boosting transactions and resulting in true values which reflect this activity.”
Jeremy Leaf, North London estate agent and former RICS residential chairman:
“The market is showing its teeth, despite the extra Budget taxes in particular reducing the likelihood of early cuts in mortgage cuts and prospect of slower wage growth.
“Demand continues to be strong, particularly for competitively-priced homes in lower-value areas.
“However, investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes.
“On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage.
“That has also given a lift to the rest of the market by releasing second-steppers and connecting chains.
“However, buyers are taking their time before committing as affordability concerns remain.”
Jonathan Hopper, CEO of Garrington Property Finders:
“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.
“This sense of urgency is prompting some buyers to view in haste and offer high in order to secure a home now and complete their purchase before the tax changes take effect.
“This will be music to the ears of sellers, many of whom have been forced to hold down their asking prices and accept lower offers for much of this year as the supply of homes for sale outstripped demand.
“But this buoyancy – which is pumping up average prices and could easily turn into another ‘Stamp Duty stampede’ as the deadline approaches – is far from universal.
“It’s a different story at the higher end of the market, where wealthy buyers who have rerun the numbers in the wake of a largely unfavourable Budget remain highly price sensitive.
“The supply of good quality prime homes for sale is strong, and buyers at this end of the market often find themselves spoilt for choice and able to negotiate hard on the price they pay – and this is keeping prime price rises much more modest.”
Nick Gunga, managing director at Purplebricks:
“After five consecutive monthly rises in UK house prices, most recently at the fastest rate in two years, there are certainly reasons to be optimistic about the strength of the market.
“However, a turbulent economic environment, combined with policy changes and the full impact of the Autumn Budget, means progress is still on uneven footing.
“This is particularly true for first-time buyers, many of whom will now be captured by the reduced stamp duty tax threshold from April 2025.
“Rather than holding steady for the foreseeable future, it seems more likely that market activity will continue to fluctuate in response to the changing landscape.”
