According to the Halifax House Price Index, this is down from annual growth of 1.9% in October, and the slower rate of annual inflation was due to the “impact of stronger growth” the same time last year.
This is the weakest annual house price growth since March 2024. The average property price is edging up to another new record high, the report noted.
The monthly house price change was unchanged in November and comes after a 0.5% rise in October, and from a quarterly perspective, house price increases came to 0.4%.
Looking at different regions, Northern Ireland had average property prices increase by 8.9% over the past year, with the typical cost coming to £220,716.
In Scotland, annual house price growth was 3.7% in November, with average property prices coming to £216,781. In Wales, property values rose by 1.9% year-on-year to £229,430.
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Within England, the North West had the highest annual growth rate at 3.2%, with average prices estimated at £245,070, followed by the North East with growth of 2.9% to £180,939.
In the South, London house prices fell by 1%, the South East decreased by 0.3% and Eastern England contracted by 0.1%.
Amanda Bryden, head of mortgages at Halifax, said: “Average house prices were broadly unchanged in November, edging up by £139 compared to October, with the typical property now costing £299,892. 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.
“This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to stamp duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.”
She added: “While slower growth may disappoint some existing homeowners, it’s welcome news for first-time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.
“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
Housing market has been in ‘static period’ as buyers wait for Budget clarity
Karen Noye, mortgage expert at Quilter, said the “market has not moved an inch”, as it has been a “static period” with buyers waiting for clarity on Budget measures.
She continued: “The dust has now settled post-Budget, giving borrowers a clearer view of what the early months of 2026 may look like. Affordability remains the biggest hurdle. Inflation has eased and there is growing expectation of a first rate cut in December, but mortgage pricing is still sensitive to shifts in swap rates and global pressures.
“Fixed rates have dipped, yet progress is gradual and high living costs continue to limit how far borrowing power can stretch, particularly for first time buyers.”
Noye said mortgage activity shows a market that “wants to move but is still cautious”.
“Lenders are competing harder at lower loan-to-value (LTV) bands, while higher-LTV deals remain expensive. Remortgagors rolling off old fixed rates are opting for shorter terms as they wait to see how borrowing costs evolve in 2026. All of this is happening against the backdrop of persistently low housing stock, which continues to support prices and limits the scope for any meaningful correction.
“The new mansion tax was only announced last week, so it has had no bearing on this month’s figures and its wider impact is likely to be limited. It may, however, create pressure for some older homeowners who are asset-rich but not cash-rich and now need to factor in an annual charge,” she added.
She noted that whether December’s prices show a small rise or slight fall or continued stability, the “story will be much the same”.
“The outlook for 2026 rests on the path of mortgage rates and the resilience of household incomes. Greater clarity post-Budget and the prospect of lower borrowing costs give the market a firmer footing, but affordability will remain the defining constraint,” Noye added.
