UK average house prices for November hit a new record high

Northern Ireland continued to experience the strongest gains, mainly due to increasingly competitive mortgage rates.

The year-on-year UK Halifax House Price Index for November was released on Friday, coming in at 4.8%, which was the highest in two years, according to Halifax and Bank of Scotland. This was in contrast with October’s 4%, as well as market expectations of 3.6%.

On a month-on-month basis, house prices rose for the fifth month in a row in November, inching up 1.3%, as compared with a 0.4% increase in October and analyst estimates of 0.2%. This was also the largest hike since June 2022.

In addition to that, the average house price hit a new record level at £298,083 (€359,477.67) in November.

This was mainly because of higher demand prompted by more clarity around the new budget, as well as lower interest rates and falling unemployment. Despite inflation still being relatively high, wages have also risen over the past few months, leading to more housing demand.

Amanda Bryden, head of Halifax Intermediaries and Scottish Widows bank, said in the November House Price Index on Halifax’s website: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost 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.”

Northern Ireland continues to lead property price growth

Annual property prices in Northern Ireland jumped 6.8% in November, more than any other region or nation in the UK, with the average property now setting buyers back by about £203,131 (€244,977).

This was mainly because of increasingly competitive mortgage rates and stronger consumer confidence.

In England, however, the North West saw the most robust gains in property prices in November, which rose 5.9% on a year-on-year basis. In the region, the average property price is now around £237,045 (€285,838.34). Similarly, West Midlands property prices also inched up 5.5%.

On the other hand, property prices in Scotland rose at a relatively softer pace, at 2.8% in November, with buyers having to pay approximately £208,957 (€251,996.92) on average per house.

Perhaps unsurprisingly, average London house prices were the most expensive in the UK having advanced 3.5% to touch £545,439 (€657,894.89) in November.