House prices are reaching a new record, as the average home was worth €15,000 more than a year ago

House prices rose for the fifth month in a row in November, the latest figures from Halifax show.

The mortgage provider recorded the biggest monthly increase of the year in November, with average prices rising by 1.4 percent.

Annually, house prices have risen by 4.8 per cent (or £14,468), the strongest level since November 2022.

It means house prices have hit a new record, with the typical house now costing £298,083, according to Halifax, up from £283,615 in November 2023.

Amanda Bryden, head of mortgages at Halifax, says the increase is due to higher demand, driven by rising wages and expectations of future interest rate cuts.

“The latest figures continue to show improving demand for mortgages as an easing of mortgage rates increases buyer confidence,” Bryden said.

“However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a volatile economic backdrop.

“As we move towards the end of the year and into 2025, positive employment numbers and expected interest rate cuts are expected to continue to support demand.

‘This should support further house price growth, albeit at a modest pace, as borrowing costs remain above the average of a few years ago.’

Halifax’s figures show a more positive picture than those of Nationwide Building Society and Zoopla.

On a year-on-year basis, Nationwide said house prices rose 3.7 percent. However, the report also said that prices are still 1 percent below the all-time peak in summer 2022, before interest rates started to rise.

Meanwhile, Zoopla said house prices have risen by just 1.5 per cent in the past 12 months.

The difference stems from the fact that Halifax and Nationwide base their figures on their own mortgage lending, while Zoopla uses sales prices, mortgage valuations and agreed sales data.

Jeremy Leaf, a north London estate agent and former chairman of Rics Residential, said: ‘The market is showing its teeth, despite the extra budget taxes which in particular reduce the likelihood of early mortgage cuts and the prospect of slower wage growth.

‘Demand remains high, especially for competitively priced homes in cheaper areas.

“The confirmation that the stamp duty concession will not be extended has given first-time buyers, especially of such properties, an opportunity to benefit from it.

‘That has also given the rest of the market a boost by releasing second-steppers and connecting chains.’

Despite the tremendous growth reported by Halifax, some in the real estate industry believe that future house price growth will slow rather than accelerate from here on out.

Tom Bill, head of UK housing research at Knight Frank, said: ‘The impact of the Labor budget is still with us on the UK housing market.

‘A rise in borrowing costs and the disappearance of mortgages below 4 percent in recent weeks means that we expect downward pressure on house prices to increase next year.

‘This sense of temporary strength is reinforced by the fact that many buyers are anticipating a rise in stamp duty in April next year.

‘The risk of inflation and mortgage rates remaining higher for longer means we have recently revised downwards our forecasts for UK house prices over the next three years.

“Growth will feel more sustainable once the economy finally moves in the right direction.”

Northern Ireland has seen the largest house price increases

According to Halifax data, all regions of Britain have seen prices rise over the past 12 months.

Northern Ireland continues to record the strongest property price growth, up 6.8 percent year-on-year in November. Houses in Northern Ireland now cost an average of £203,131.

House prices in Wales also showed strong growth, up 4.1 per cent, compared to the previous year, with properties now costing an average of £225,084.

The North West has seen the biggest growth in house prices in England, with the average house rising by 5.9 per cent compared to the previous year, while properties now cost an average of £237,045.

Properties in the West Midlands also saw strong growth, up 5.5 per cent year-on-year to an average house price of £257,982.

Scotland experienced a more modest increase in house prices compared to the rest of Britain, with house prices up 2.8 percent on the previous year.

London retains the top spot for the highest average house price in Britain, with £545,439, up 3.5 percent on last year.

Jonathan Hopper, chief executive of buying agency Garrington Property Finders, said: ‘In some parts of the market, hesitation has turned to haste, particularly among first-time buyers rushing to complete their purchases before stamp duty thresholds change at the end of March.’ Hopper said.

“This sense of urgency is causing some buyers to rush to look and bid high to secure a home now and complete their purchase before the tax changes take effect.

‘This will be music to the ears of sellers, many of whom have been forced to keep their asking prices low and accept lower offers for much of this year as the supply of homes for sale exceeded demand.’