Halifax: Average house prices hit new high – will the recovery last?
Average house prices hit a new record high in November, according to the Halifax House Price Index – but will the recovery last?
The latest Halifax House Price Index puts annual growth at 4.8%, up from 4% in October.
Prices were up on a monthly basis by 1.3% to £298,083.
The figures, based on Halifax’s own mortgage lending, have been attributed to a pre-Budget rush to secure a mortgage as well as extra urgency before Stamp Duty thresholds drop next April.
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.
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.
Bryden added:
“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.
“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Commenting on the report, Nathan Emerson, chief executive of Propertymark, said:
“We have seen an encouraging transformation across the year in terms of a resilient trend of house price growth.
“Affordability and overall confidence in the sector have also seen a boost throughout the year so far, and with interest rates now easing, many buyers will have increased confidence to approach the housing market.
“We are, however, likely to see a spike in homes for sale and those looking to move home, especially across England and Northern Ireland trying to complete before the rises to Stamp Duty commence from April 2025.”
Iain McKenzie, chief executive of The Guild of Property Professionals, said:
“Another rise in house prices shows the market is determined to finish this year on a high, with sellers in a prime position to get the most from their investment.
“Last month’s growth is much larger than anticipated but market conditions are favourable for buyers right now.
“There has been low unemployment, a recent interest rate cut, and any fears that the Budget would affect first-time buyers put to bed.
“Although a surge in energy prices caused inflation to jump last month, we are still expecting interest rates to steadily come down in the next six months.
“Mortgage affordability and the availability of good deals are still holding the market back, so any steps to combat this by the Government and the Bank of England will surely benefit the industry.”
However, Jonathan Hopper, chief executive of Garrington Property Finders, warned a sense of urgency ahead of the Stamp Duty deadline next April is prompting some buyers to view in haste and offer high in order to secure a home now and complete their purchase before the tax changes take effect.
Hopper said:
“This will be music to the ears of sellers, many of whom have been forced to hold down their asking prices and accept lower offers for much of this year as the supply of homes for sale outstripped demand.
“But this buoyancy – which is pumping up average prices and could easily turn into another ‘Stamp Duty stampede’ as the deadline approaches – is far from universal.
“It’s a different story at the higher end of the market, where wealthy buyers who have rerun the numbers in the wake of a largely unfavourable Budget remain highly price sensitive.
“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.”
Kindly shared by Estate Agent Today
