UK house prices rose for the fifth month in a row in November which were up by 1.3% and have pushed up the annual growth rate to +4.8%.
The average property now costs £298,083, edging above October’s record price of £294,353.
Amanda Bryden, Head of Mortgages, Halifax, said: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boosts 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.”
We have seen an encouraging transformation across the year.”
Commenting on the figures, Nathan Emerson, CEO of Propertymark says: “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.”
Surprising
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, strikes a more cautious note, saying: “The continued increase in average house prices is surprising in light of the affordability challenges and reduced demand in some parts of the country.
“Those areas where there is limited stock to tempt buyers are seeing prices hold firm and indeed rising in some cases. Homes that are well-priced and well-presented continue to sell relatively quickly
“Buyers may pause to assess the financial implications of a purchase but high-demand areas are likely to retain interest into the new year and beyond.”
Good cheer
And mortgage broker Mark Harris, chief executive of SPF Private Clients, says: “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.
“The Bank of Mum and Dad continues to play a significant role in helping first-time buyers onto the housing ladder. With precious little in the Budget to encourage them, and the stamp duty holiday coming to an end in March 2025, this is not going to get any easier.
“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.”
The market is showing its teeth.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman adds: “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.”
It’s amazing
Director of Benham and Reeves, Marc von Grundherr, comments: “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.”
We’ve seen an immediate reaction from buyers following the Autumn Budget.”
And CEO of Yopa, Verona Frankish, says: “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.
“There is still time to get a sale over the line before April next year but the property purchasing process can be a complex one riddled with delays. Those who are currently house hunting need to be aware that they could well miss the deadline and so they need to factor in the potential increase in costs that this would bring.
“Stretching your budget to its maximum in order to secure a property at speed and ahead of other buyers may well work in the short term, but it could prove problematic if you are required to pay more in stamp duty having completed beyond 31st March next year.”