House prices in the UK have reached a record high after a fifth consecutive increase in November, according to Halifax.
The lender’s house price index found that the average cost of a home now stands at £298,083, an increase of close to £5,000 on the previous month. This surpasses the previous record high of £293,507 which was set in June 2022.
Month-on-month, house prices grew by 1.3% in November, the largest increase so far this year and the fifth in a row recorded by Halifax.
The average price also rose by 4.8% year-on-year, marking the highest annual rate of increase since November 2022.
Amanda Bryden, the head of mortgages at Halifax, said: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence.”
But despite the positive figures, Bryden warned that “buyer confidence may be tested against a changeable economic backdrop.”
Bryden also suggested that demand in the property sector should remain high due to positive employment figures and expectations for interest rates to fall further.
She said: “This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Regionally, Northern Ireland saw the largest annual house price growth, rising by 6.8% year-on-year in November. In England, the North West saw the best annual growth at 5.9% to an average of £237,045.
London remains on top for the highest average house price, rising 3.5% year-on-year to £545,439.
Director of Benham and Reeves, Marc von Grundherr, commented: “It’s full speed ahead following the Autumn Budget, with the monthly rate of house price growth in November the largest seen so far this year.”
“It’s amazing what a little urgency can do and with stamp duty costs now set to increase from April next year, buyers are acting with a far greater degree of intent which is driving the market forward at pace.”
“Of course, affordability remains an issue and many buyers are continuing to struggle with the high cost of securing a mortgage. However, what we are seeing is a measured return to health, driven by increasing buyer demand, which is very good news for sellers and the wider property market.”
