UK house prices rose for the second month in a row in November, driven by a shortage of properties available on the market and some mortgage relief.
Average UK house prices climbed 0.5% to £283,615, some £1,300 more than in October, according to new figures from lender Halifax.
It was the second monthly gain in a row after six consecutive falls before that.
However, it was still a 1% drop compared with November a year ago, a steep fall from the 3.1% decline in the year to October.
Kim Kinnaird, director at Halifax Mortgages, 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.”
Read more: Mortgages: First-time buyers facing deposits twice their annual income
She added: “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.”
Prices went up the most in Northern Ireland, with house prices increasing by 2.3% on an annual basis to ann average £189,684 — £4,294 higher than the same time last year.
House prices in Scotland have flattened over the last year, with the average property in the country costing the same £203,116 as a year before
Wales recorded one of the lowest annual drops at -1.5%, with homes selling for an average of £215,787 in November.
At the other end of the scale, property prices in the South East fell most sharply when compared to other UK regions over the last year, falling by 5.7% to £373,943 — a drop of £22,702.
London retained the number one spot for the highest average house price in the UK, at £524,592, though prices in the capital have now fallen by 3.8%.
|
Region |
Average price |
Annual % change |
|
East Midlands |
£232,776 |
-4.4% |
|
Eastern England |
£322,230 |
-5% |
|
London |
£524,592 |
-3.8% |
|
North East |
£168,666 |
-2.6% |
|
North West |
£223,036 |
-2.1% |
|
Northern Ireland |
£189,684 |
2.3% |
|
Scotland |
£203,116 |
0% |
|
South East |
£373,943 |
-5.7% |
|
South West |
£291,902 |
-5% |
|
Wales |
£215,787 |
-1.5% |
|
West Midlands |
£243,655 |
-3.3% |
|
Yorkshire and the Humber |
£202,391 |
-2.1% |
Alice Haine, personal finance analyst at Bestinvest, said: “While the data offers hope that stability has returned to the property market, it may be the calm before the storm if house prices weaken over the course of next year as the drag effect from the Bank of England’s (BoE) 14 interest rate hikes continues to filter through to the market.
Read more: How first-time buyers can get on the property ladder in a cost of living crisis
“It means sellers may be forced to price their homes more competitively to secure a sale while mortgage rates are expected to ease further though remain high in line with the ‘higher for longer’ mantra for interest rates from the BoE.”
Tom Bill, head of UK residential research at estate agent Knight Frank, said: “The jury is still out on the sustainability of recent rises in such a thin market, but if we are not at the bottom of the current housing market slowdown, we must be close.
“The key is that sentiment has become more buoyant in recent weeks as the economic data improves and keeps downwards pressure on mortgage rates.”
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