UK house prices rise for second month in a row

Prices, however, have dropped by one percent year-on-year, with the typical cost of a home in the UK now at £283,615. Of these, the south east of England continues to experience the most downward pressure on house prices. 

Coming from Halifax’s latest house price index, Northern Ireland was the strongest performing area in the UK – with house prices increasing by 2.3%. Scotland also continues to show resilience, though growth has flattened over the past year, while Wales recorded an annual fall of 1.5%.  

London, meanwhile, retains the top spot for the highest average price in the UK at £524,492.  

Reflecting on this, Halifax Mortgages director Kim Kinnaird said: “UK house prices rose for the second month in a row, up by 0.5% in November or £1,394 in cash terms, with the average house price now sitting at £283,615. 

“Over the last year, despite the wider economic headwinds, property prices have held up better than expected, falling by a relatively modest one percent on an annual basis, and still some £40,000 above pre-pandemic levels. 

“The resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand. That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers.  

“With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases. 

“However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”