Over the month house prices grew by 1.3% according to the mortgage lender’s house price index. Meanwhile, over the year to November they climbed by 4.8% which compares to an annual rise of 4% in October.
It’s the fifth month in a row the Halifax House Price Index has recorded increases.
Amanda Bryden, head of mortgages for Halifax, said: “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.”
Northern Ireland recorded the strongest property price growth with house prices increasing by 6.8% over the year. Properties here have average price tags of £203,131, according to Halifax.
London remains the place with the highest average house price in the UK – a typical home in the capital costs £545,439, up 3.5% compared to last year.
What is the outlook for house prices in 2025?
Karen Noye, mortgage expert at Quilter, said: “The rise in house prices will offer some relief to existing homeowners who may have been concerned about a prolonged market downturn. Yet, questions remain about how sustainable this recovery might be.
“The Bank of England’s recent decision to reduce interest rates to 4.75% has eased some of the pressure on mortgage holders, but for many households refinancing in the coming months, monthly repayments will still rise significantly compared to previous fixed-rate deals.”
She added: “Today’s figures from Halifax suggest a cautiously optimistic outlook, 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.”
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