House prices increased by 1.3% in November, a fifth consecutive monthly increase according to the Halifax.

Property prices are up 4.8% on an annual basis and the typical property now costs £298,083, a new record.

Northern Ireland continues to record the strongest annual house price growth in the UK.

Amanda Bryden, Head of Mortgages at the Halifax, says: “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.

“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.”

In response Mark Harris – chief executive of mortgage broker SPF Private Clients – says there could be even better news next year.

“With the Bank of England Governor suggesting there may be four rate cuts next year, this will bring further cheer to hard-pressed borrowers who are struggling with affordability” explains Harris.

“With Swaps continuing to fall, the direction of travel of mortgage rates is downwards although it’s a slow, measured process. Borrowers looking for a mortgage should plan ahead as much as possible and speak to a whole-of-market broker to find the best deal available to them.”

But Karen Noye, mortgage expert at wealth management firm Quilter, is more cautious.

She comments: “Recent data from the Bank of England has already pointed to rising mortgage approvals, which reached their highest level since mid-2022. Combined with a reduction in quoted mortgage rates, this suggests that buyers are returning to the market, encouraged by the more favourable lending conditions. 

“ … But it is clear that the market remains finely balanced. Government policies aimed at supporting housebuilding and improving access for first-time buyers will be crucial if this recovery is to translate into long-term stability. As we look ahead to 2025, much will depend on whether these early signs of recovery can be sustained in the face of ongoing economic uncertainty.”

The latest Halifax data shows that Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by 6.8% on an annual basis in November. Properties in Northern Ireland now cost an average of £203,131. 

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

House prices in the North West recorded the strongest growth of any region in England, up 5.9%, compared to the previous year, with properties now costing an average of £237,045.

Properties in the West Midlands also saw strong growth, increasing 5.5% on an annual basis to an average house price of £257,982.

Once again Scotland saw a more modest rise in house prices compared to the rest of the UK, property here now costs £208,957, 2.8% more than the year before. 

London retains the top spot for the highest average house price in the UK, at £545,439, up 3.5% compared to last year.

Jeremy Leaf, an estate agent and a former RICS residential chairman, says: “The market is showing its teeth, despite the extra Budget taxes in particular reducing the likelihood of early cuts in mortgage cuts and prospect of slower wage growth. Demand continues to be strong, particularly for competitively-priced homes in lower-value areas. 

“However, investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes. 

“On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage. That has also given a lift to the rest of the market by releasing second-steppers and connecting chains.“

Alice Haine of investment platform Best Invest says some of the large gains are down to first time buyers trying to beat the April 2025 deadline beyond which stamp duty rises.

She adds: “It means property prices are likely to rise in the run-up to the deadline as buyers and sellers race to beat the tax hike. 

“Beyond the start of April, the market is likely to be more muted as buyers choose to purchase cheaper homes to reduce their tax bill or negotiate more aggressively to afford their desired property. There is also the sting in the tail for second homeowners and buy-to-let landlords who are already contending with the hike in the property tax on second property purchases, which came into effect immediately [after the October Budget].”