The Office for National Statistics (ONS) figures showed this was the strongest annual growth recorded in 2024 and the eighth consecutive yearly increase.
Colby Short, co-founder and CEO of GetAgent.co.uk, said: “The annual rate of house price growth was stronger than expected in November and there’s no doubt that the government’s decision not to extend current stamp duty relief thresholds is helping to drive this trend.
“We’ve seen previously how a stamp duty deadline induced surge in demand can drive market performance and the expectation is that we will see strong growth over the first three months of this year.”
He added: “Once the clock does expire on current relief thresholds, there will almost certainly be a market correction, most likely in the form of reduced transaction numbers and weaker rates of house price growth.
“However, the industry-wide view is that the impact of this stamp duty deadline will be far more marginal compared to previous examples and so the consensus is that 2025 will be a year of overarching stability and positive growth.”
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Richard Harrison, head of mortgages at Atom Bank, said the prospect of lower mortgage rates would “add further fuel to the fire for house price growth”.
He said November seeing the largest annual rise was no surprise as the market was “especially active” at the end of the year.
Harrison added: “With so many buyers looking to complete deals before the year was out, it was inevitable that prices would be pushed higher, a trend that’s unlikely to change in the near future.”
On a monthly basis, however, average house prices dropped 0.4%.
Karen Noye, mortgage expert at Quilter, said this reflected “seasonal cooling and the broader pressures on household finances”.
Regional house price changes
In England, house prices increased 3% versus the prior year and dropped 0.4% month-on-month to an average of £306,494.
The North East saw the strongest monthly uplift of 1.1%, taking average house prices to £168,791. The region also recorded the largest annual growth at 5.9%.
London saw the biggest fall in average house prices, with a 1% drop to £511,279. It was also the only area to record an annual decline in average values, with a 0.1% decrease.
In Wales, house prices fell 0.7% from October to November to an average of £219,446, while on an annual basis, values were up by 3%.
Average house prices in Scotland rose 4.7% year-on-year to £195,036 and, monthly, there was a 0.8% fall.
Meanwhile, in Northern Ireland, house prices increased annually and monthly by 2.8% and 6.2% respectively, averaging £190,553.
Sharp rise in semi-detached and terraced home values
Annually, terraced homes saw the largest increase, with a 4.7% jump to £242,598.
This was followed by semi-detached properties, which rose by 4.4% to an average of £283,546.
On average, the price of detached homes increased by 1.5% to £436,949 over the 12 months, while flats and maisonettes rose in value by 2.1% to £233,230.
There was a 24.6% surge in the average price of a new build from November 2023 to November last year, averaging £424,049. Monthly, values fell by 0.2%.
Resale properties saw a 1.4% yearly increase to £285,458, while on a monthly basis, this was a 0.4% fall.
First-time buyers paid 4.2% more for their homes on average than the previous year, coming to an average of £244,519. Compared to the previous month, values were 0.1% lower.
Former owner-occupiers bought their homes for 2.1% more than the year before, averaging £332,626. Monthly, this was a 0.8% decline.
