This was the fifth month in a row that house prices increased, the Halifax house price index showed. Annually, values were 4.8% higher. This was compared to a 4% annual jump recorded in October.
Amanda Bryden, head of mortgages at Halifax, said: “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. 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.
“Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost[s] 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.”
Bryden added: “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.”
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Northern Ireland exceeds the rest of the market
The Halifax report showed that house prices in Northern Ireland had the strongest growth out of any nation or region, with a 6.8% annual increase to £203,131.
In Wales, house prices rose by 4.1% annually to £225,084.
Scotland recorded a softer annual growth in house prices, up 2.8% on last year to an average of £208,957.
Within England, the North West saw the highest growth. In the region, house prices were up 5.9% year-on-year to an average of £237,045.
There was also strong growth in the West Midlands, where house prices averaged £257,982, following a 5.5% yearly jump.
The weakest annual growth in house prices was recorded in the South East, with a 3.4% increase to £388,534.
London was the region with the highest average property values at £545,439 in November, marking a 3.5% rise since last year.
A strong end to the year
Industry figures said the rise in house prices pointed to healthy activity during the usually quiet end-of-year period.
Iain McKenzie, CEO of The Guild of Property Professionals, said: “Another rise in house prices shows the market is determined to finish this year on a high, with sellers in a prime position to get the most from their investment.
“Last month’s growth is much larger than anticipated, but market conditions are favourable for buyers right now. There has been low unemployment, a recent interest rate cut, and any fears that the Budget would affect first-time buyers put to bed.”
He added: “Although a surge in energy prices caused inflation to jump last month, we are still expecting interest rates to steadily come down in the next six months.
“Mortgage affordability and the availability of good deals are still holding the market back, so any steps to combat this by the government and the Bank of England will surely benefit the industry.
“Estate agents across the UK typically prepare for a slowdown in activity over the festive period. If you are looking to sell early next year, now is a good time to find the right estate agent for you, as they will be looking to replenish their stock with new properties to market.”
Rachael Hunnisett, director of April Mortgages, said the property’s hot streak continued, demonstrating the sector’s “resilience to change”.
Hunnisett added: “Although market activity often slows in the run-up to Christmas, the signs point to a busy winter period as homeowners rush to beat April’s stamp duty deadline.
“Over the longer term, homeowners’ ability to move up the property ladder will rest on the direction of interest rates.”
She said: “Despite two rate cuts by the Bank of England this year, they remain well above their long-run average, and with house prices creeping back up, affordability pressures could continue to bite.
“The longer the current economic uncertainty goes on, the harder borrowing decisions will become for homeowners, who should avoid making assumptions based on speculation.”
Jonathan Hopper, CEO of Garrington Property Finders, said hesitation had turned into hurry as some buyers rushed to complete before the stamp duty threshold was raised.
He added: “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.”
