The Halifax house price data released on Friday shows that property values were up 1.3% compared with October – the fifth consecutive monthly rise – and means property values are now 4.8% higher year-on-year.
The latest figures, which reveal that the average house price hit a record high of £298,083 last month, continues to show improving levels of demand for mortgages, as an easing in borrowing rates boost buyer confidence, although this may be tested in the months ahead against a changeable economic backdrop. But for now industry industry reaction to the latest data is broadly positive.
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “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.”
Also reflecting on the data, Nathan Emerson, CEO of Propertymark, commented: “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.”
Jeremy Leaf, north London estate agent, added: “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. However, buyers are taking their time before committing as affordability concerns remain.”
