House prices rise again – but London properties still down on last year
The average price of a home rose by 0.5 per cent in November, following a rise of 1.2 per cent the prior month, according to the latest reading from Halifax.
On an annual basis, house prices fell by 1.0 per cent compared to a 3.1 per cent fall in October. The cost of a home is also £40k above pre-pandemic levels.
In the UK the typical cost of a property now sits at £283k, around £1,300 more than last month.
London has retained the top spot for the highest average house price in Britain, at £524k. However, prices in the capital have now fallen by 3.8 per cent on an annual basis.
Kim Kinnaird, director at Halifax Mortgages, said that despite the wider economic headwinds, property prices have held up better than expected, as a shortage of supply has improved pricing.
In the last year, many sellers have put off placing their homes on the market because of high mortgage rates offset by surging inflation.
She said: “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.”
She added: “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.”
Tom Brown, Managing Director of real estate at Ingenious, said: “The UK property sector continues to demonstrate its resilience and popularity in the face of high inflation and higher borrowing rates. Nationally, there remains a significant shortage of housing inventory across most locations and price points. Consequently, any slow-down in sales volumes from homeowners is likely to be offset by increased demand from renters and investors.”