UK house prices up 0.5% in November: Halifax

UK house prices have continued their late recovery according to this morning's figures from Halifax - up by 0.5% in November, with the price of a typical UK home now standing at £283,615 or around £1,300 more than last month.

Northern Ireland leading the way

According to the data, Northern Ireland is the strongest performing nation or region in the UK, with house prices up by +2.3% on an annual basis. A typical home in Northern Ireland now costs an average of £189,684 - £4,294 higher than the same time last year.

Scottish house prices are also showing a degree of resilience, though growth has flattened over the last year (0.0%), with the average property in the country now costing £203,116.

Wales recorded one of the lowest annual falls (-1.5%), with homes selling for an average of £215,787 in November.

At the other end of the scale, property prices in the South East fell most sharply when compared to other UK regions over the last year (-5.7%) to £373,943, a drop of -£22,702.

London retains the top spot for the highest average house price in the UK, at £524,592, though prices in the capital have now fallen by -3.8% on an annual basis.

Kim Kinnaird, Director, Halifax Mortgages, said: “UK house prices rose for the second month in a row, up by +0.5% in November or £1,394 in cash terms, with the average house price now sitting at £283,615. Over the last year, despite the wider economic headwinds, property prices have held up better than expected, falling by a relatively modest -1.0% on an annual basis, and still some £40,000 above pre-pandemic levels.

“The resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand. That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely a result of an improving picture of affordability for homebuyers.

"With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.

“However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”

Iain McKenzie, CEO of The Guild of Property Professionals, comments: “The property market is showing resilience and stability in the face of the economic challenges that have rocked the country throughout 2023.

“As the year draws to a close, there is light at the end of the tunnel, though market conditions will remain uncertain with many households still expressing affordability concerns.

“The annual picture shows a fall of 1%, which is more optimistic than forecasts at the start of the year, and will be a further motivator for buyers looking for properties at a slightly reduced rate.

“The uncertainty on house price trends has caused some sellers to be hesitant to put up the ‘for sale’ signs, causing a current shortage of stock that will undoubtedly be propping up house prices. The demand for good-quality housing is still strong and our research shows that over one in five home moves are currently needs-based.

“Inflation is finally coming down and lenders are taking this into account, with mortgage approvals seeing an upward trend. This is great news for first-time buyers that are facing the squeeze more than other groups.”

Sam Mitchell, CEO of Purplebricks said: “Purplebricks has seen viewings and offers increase week on week in November, a surge in activity which is highly uncharacteristic for this time of year where the market is usually experiencing a seasonal slowdown. This follows from two consecutive interest rate holds that have caused banks to grow more competitive in the rates they’re offering to customers.

"It lines the housing market up for a strong start to 2024, where buying and selling decisions previously stalled by continuously rising interest rates are now being advanced. Increased heat in the rental market will also bolster first-time buyers’ drive to get on the property ladder, reflecting improved confidence across the housing market as a whole.”

Tom Brown, Managing Director, Real Estate at Ingenious, said: “The UK property sector continues to demonstrate its resilience and popularity in the face of high inflation and higher borrowing rates. Nationally, there remains a significant shortage of housing inventory across most locations and price points. Consequently, any slowdown in sales volumes from homeowners is likely to be offset by increased demand from renters and investors.

“However, it's essential to note that the situation is not uniform throughout the country and across all price ranges. When analysing opportunities, it is key to understand the underlying subsectors and regional dynamics. Taking too broad a view of the market can be misleading. For instance, the institutional housing sector has experienced fewer disruptions compared to the residential sector due to its long-term investment horizon, rental growth and substantial capital inflows.

“The New Year will bring with it a new and exciting set of challenges and opportunities for growth and progression in what we do. We are looking forward to continuing to work with borrowers and investors and delivering for them.

"The dynamic landscape of the markets that we serve, and the wider economy requires us to evolve to stay relevant in addressing diverse challenges including the climate crisis, and changes in the way we are all living. 2024 will see Ingenious broaden the reach of our widely embraced development lending product.

"This expansion aims to offer extended terms for stabilisation to specialised developers within the rental sectors. Additionally, special lending terms will be introduced for developers with a specific focus on minimising embedded carbon in their construction practices.”