Average House Prices Reach Record High in November, Halifax Reports
The UK housing market continued its upward trajectory in November, with average house prices hitting a record high, according to the latest Halifax House Price Index. Annual growth rose to 4.8%, up from 4% in October, while monthly prices increased by 1.3%, bringing the average house price to £298,083.
What’s Driving the Surge?
The rise in prices has been attributed to a pre-Budget rush to secure mortgages and heightened activity ahead of the planned Stamp Duty threshold changes coming into effect in April 2025. This urgency has fueled demand across all regions, pushing up prices even further.
Regional Highlights
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Northern Ireland led the pack, recording the strongest annual property price growth at 6.8%.
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The North West of England followed with a 5.9% increase, while the West Midlands saw typical values rise by 5.5%.
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London remains the most expensive region, with the average house price reaching £545,439, up 3.5% compared to last year.
Industry Insights
Amanda Bryden, Head of Mortgages at Halifax, highlighted ongoing affordability challenges for buyers but noted that positive employment figures and anticipated interest rate cuts could support continued demand. “While borrowing costs remain above the levels seen in recent years, modest house price growth is expected as we move into 2025,” she added.
Propertymark’s Chief Executive, Nathan Emerson, emphasized resilience in the market, stating: “Affordability and confidence have improved throughout the year, and with interest rates easing, we anticipate increased activity, especially before the Stamp Duty changes take effect.”
Iain McKenzie of The Guild of Property Professionals expressed optimism about the market’s strength. “Sellers are in a strong position to benefit from current conditions, including low unemployment and improving mortgage rates. However, affordability challenges remain a barrier for many buyers,” he said.
Concerns and Cautions
Jonathan Hopper, CEO of Garrington Property Finders, warned that the approaching Stamp Duty deadline could lead to rushed decisions by buyers, driving prices even higher. “This urgency might benefit sellers now but risks creating another ‘Stamp Duty stampede’ as the deadline nears,” he said. Hopper also noted that higher-end market activity remains subdued, with wealthy buyers negotiating harder due to an abundance of prime properties and the impact of a less favorable Budget.
Looking Ahead
The UK housing market’s resilience is set to be tested in 2025 as economic conditions shift. While employment stability and easing interest rates are expected to underpin demand, affordability remains a critical concern. Both government and industry players will need to address these challenges to ensure sustainable growth in the housing sector.
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