Average UK house prices rose for the fifth consecutive month in November and have hit a new record high, Halifax data shows.
The latest Halifax House Price Index suggests lower mortgage rates continue to boost the market despite tax rises announced in the Autumn Budget.
Its latest report showed house prices increased by 1.3% on a monthly basis to £298,083.
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The figure is up 4.8% annually compared with 4% in October.
Some of this may be due to buyers deciding it was the right time to buy a property ahead of the Budget while others may be securing their purchase before stamp duty thresholds drop in April next year.
Despite these positive trends, Amanda Bryden, head of mortgages at Halifax, said 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,” says Bryden.
“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Record house prices
Average house prices continue to rise across all regions.
Northern Ireland posted the strongest property price growth of any nation or region in the UK for November with prices rising by 6.8% annually.
The North West of England recorded the highest growth of any region, up 5.9%, while typical values in the West Midlands were up 5.5%.
London retains the top spot for the highest average house price in the UK, at £545,439, up 3.5% compared with last year.
Nicky Stevenson, managing director at national estate agent group Fine & Country, said: “Market activity typically slows at this time of year as buyers rush to finalise moves before Christmas or pause their plans to focus on the festive season. However, this rise in house prices — both monthly and year-on-year — suggests a shift, with many buyers forging ahead.
“This surge may be driven by a desire to complete transactions ahead of the tax increases announced by the chancellor in October. Nationwide’s November House Price Index confirms this trend, showing the fastest annual price growth in two years at 3.7%.”
She suggests the falling stamp duty thresholds next year could be a market driver.
From April 2025, the current £250,000 threshold for home movers will revert to £125,000, while the first-time buyer exemption will drop from £425,000 to £300,000.
“It’s not uncommon to witness a flurry of activity following shifts in policy or economic indicators, as those impacted make quick decisions to mitigate potential costs,” adds Stevenson.
“However, looking forward, tax increases following the Budget could weaken buyer purchasing power, and economic uncertainty has caused some of the most competitive mortgage rates to vanish.
Are house prices rising?
Average house prices look set to end the year on a high, potentially making it a good time to sell a property.
Growth may slow in 2025 though.
Knight Frank has forecast a 3% rise in average house prices this year, after previously predicting a decline.
But it has revised its 2025 forecasts downwards due to the “more adverse rate environment” in the aftermath of the Autumn Budget and expects average UK house price growth of 2.5%.
Zoopla expects house prices to have increased by 2% by the end of 2024 and by 2.5% over 2025.
Savills is predicting 2.5% average price growth this year 4% in 2025.
But a lot depends on what and where you are buying. The agency brand warns that prime buyers are facing higher additional stamp duty rates and the loss of non-dom status. It is forecasting a 4% decline in average prices next year for prime central London properties as higher taxes take their toll
Jonathan Hopper, chief executive of buying agent Garrington Property Finders, said wealthy buyers remain “highly price sensitive” after rerunning the numbers in the wake of a largely unfavourable Budget.
He added: “The supply of good quality prime homes for sale is strong, and buyers at this end of the market often find themselves spoilt for choice and able to negotiate hard on the price they pay – and this is keeping prime price rises much more modest.”
