House prices have risen by £10,000 through November, official data shows
- House prices are rising in Northern England, but falling in London
House prices rose by £10,000 in the 12 months to November, according to official figures.
According to the Office for National Statistics, the average property price rose by 3.3 per cent in the year to November 2024, despite a 0.4 per cent fall in the final month of that period.
The average home was worth an estimated £290,000 in November, up from £280,000 in November 2023.
Jonathan Hopper, CEO of buying agency Garrington Property Finders, said: ‘The property market has started the new year briskly, with agents reporting huge interest from both buyers and sellers.
“But the drop in average prices in November serves as a chastening reminder to sellers of the amount of competition they face in securing a buyer.
‘Although the annual figures still show a reassuringly gentle upward trajectory, the monthly data show how competitive prices have become.’
Rising trend: House prices have risen by 3.3% according to the latest ONS figures, despite prices falling by 0.4% in November
Where have house prices risen the most?
The ONS figures are lagged compared to other house price indexes, but are considered more accurate because they are based on completed sales.
According to the ONS, house prices rose most in Northern Ireland, with the average home rising 6.2 percent year-on-year and now worth £191,000.
In Scotland, prices have risen by 4.7 percent, while both Wales and England have seen prices rise by an average of 3 percent.
Across all English regions, annual house price growth was highest in the North East, where prices rose by 5.9 per cent in the 12 months to November 2024.
London was the English region with the lowest annual growth, with prices falling 0.1 percent in the 12 months to November 2024, after a monthly decline of as much as 1 percent.
In fact, London was the only English region where house prices fell in the 12 months to November 2024.
“Prices fell by as much as 1 percent in London in November, which could be a whiplash effect from the tax increases announced by the Chancellor in her budget at the end of October,” Hopper added.
‘The capital also sees prices drop every year, because price-sensitive buyers negotiate hard about the price or look elsewhere.
Jonathan Hopper, CEO of purchasing agency Garrington Property Finders
‘Regions where value is perceived to be strongest are seeing prices rise rapidly.’
In November alone, prices in North East England rose by 1.1 percent and by 5.9 percent year-on-year.
In the North West and in Yorkshire and the Humber, annual price inflation was 5.7 percent.
What next for house prices?
Looking ahead, most forecasts point to a similar picture for house prices over the next twelve months.
Higher mortgage rates will continue to weigh heavily on what buyers can afford.
Karen Noye, mortgage expert at Quilter, said: ‘Despite the annual gains, the monthly decline could signal early signs of buyer hesitation amid wider economic uncertainty.
‘This uncertainty will be exacerbated by the recent bond market turmoil, which is putting upward pressure on mortgage rates. This dynamic is likely to dampen demand, especially among first-time buyers already under pressure from rising costs of living and tighter credit criteria.”
Agents are also reporting high inventory levels, which could also help keep prices in check.
More choice in the market is great for buyers who want to negotiate and get a discount, but for sellers it can mean more homes to compete with.