Demand pushes house prices to a record high

House prices in the UK have climbed to a new record high, with the average property now costing £298,083, Halifax reveals.

This marks a 1.3% increase from October and a 4.8% annual rise.

Northern Ireland continues to lead the way with the strongest annual growth with prices going up 6.8%.

Wales and the North West of England also saw significant increases, at 4.1% and 5.9% respectively.

‘House prices rose for the fifth month’

Amanda Bryden, the head of mortgages at Halifax, said: “UK house prices rose for the fifth month in a row in November, up by +1.3% in the month – the biggest increase so far this year.

“This pushed the annual growth rate up to +4.8%, its strongest level since November 2022.”

She added: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence.

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

House prices for 2025 will continue rising with demand from positive employment figures and lower interest rates will have an effect – but at a ‘modest pace’.

Property sector reaction to record house prices

Nathan Emerson, the 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.”

Tom Bill, the head of UK residential research at Knight Frank, said: “The impact of Labour’s Budget is still in the post for the UK housing market.

“An increase in borrowing costs and the disappearance of sub-4% mortgages in recent weeks means we expect downwards pressure on house prices to intensify next year.

“This sense of temporary strength is reinforced by the fact many buyers are acting ahead of a stamp duty increase next April.”

He added: “The risk that inflation and mortgage rates stay higher for longer means we recently revised down our UK house price forecasts for the next three years.”

Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Buyers didn’t get the memo that they’re meant to be in hibernation right now, because properties are still selling, and price rises have accelerated slightly.

“They rose faster than had been expected, and while they’re not racing away at breakneck speed, since the first interest rate cut, they’ve been slowly making their way to another new high.

“The busy market has also been supported by buyers getting in on the act – particularly those with more than one property, who’ve been convinced that the tax situation isn’t going to get any easier in the next few years, so they may as well get out while the going is good.”

Director of Benham and Reeves, Marc von Grundherr, said: “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.”

The chief executive of Yopa, Verona Frankish, said: “We’ve seen an immediate reaction from buyers following the Autumn Budget and this uplift in market activity is driving current house price performance, however, those who are keen to complete before stamp duty costs increase really need to be acting sooner rather than later.”

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