The UK housing market saw a significant surge in November, with average house prices reaching an all-time high of £298,083 (€359,477.67), according to Halifax's latest House Price Index. The year-on-year growth rate jumped to 4.8%, the highest in two years, surpassing October’s 4% increase and exceeding market expectations of 3.6%. Monthly growth also accelerated, with prices rising by 1.3%, marking the fifth consecutive month of increases and the largest monthly gain since mid-2022.
The rise was driven by improved buyer confidence, fueled by easing mortgage rates, clarity on fiscal policies, and declining unemployment. Despite ongoing inflationary pressures, rising wages have further bolstered housing demand. However, affordability challenges persist for many prospective buyers.
Northern Ireland led the nation in annual price growth, with property values increasing by 6.8%, pushing the average house price to £203,131 (€244,977). In England, the North West experienced robust gains of 5.9%, with average prices reaching £237,045 (€285,838.34), while the West Midlands followed closely with a 5.5% increase. Scotland recorded a more moderate rise of 2.8%, bringing the average property price to £208,957 (€251,996.92).
London remained the most expensive region for housing, with prices climbing 3.5% year-on-year to an average of £545,439 (€657,894.89). Analysts suggest that while demand is expected to remain strong into 2025, the pace of price increases may moderate as borrowing costs stabilize above pre-pandemic levels.
