Fastest Monthly Growth of the Year

UK house prices rose at their fastest monthly rate in November 2024, according to the Halifax, part of Lloyds Banking Group. Property values increased by 1.3% compared to October, marking the fifth consecutive monthly rise. The average house price reached a record-breaking £298,083, surpassing October’s peak of £293,999.

Strong Annual Growth

House prices have grown by 4.8% year-on-year, the fastest annual rate in two years. This surge reflects improved demand for mortgages as easing interest rates boost buyer confidence. Amanda Bryden, head of mortgages at Halifax, attributed the rise to stronger employment and falling mortgage costs, which are expected to fuel further increases into 2025.

However, she noted that affordability challenges remain significant:

“Buyer confidence may be tested against a changeable economic backdrop,” Bryden said.

Stamp Duty Deadline Driving Demand

The upcoming stamp duty changes in April 2025 have triggered a rush among first-time buyers and movers to complete purchases before the new thresholds take effect.

• Jonathan Hopper, CEO of Garrington Property Finders, commented:

“Hesitation has turned to hurry in some parts of the market.”

• Alice Haine, personal finance analyst at Bestinvest, also warned of a potential slowdown after the April deadline, as buyers may opt for cheaper homes

Regional Price Trends

• London: The most expensive region, with an average property costing £545,439.
• Northern Ireland: The fastest-growing market, with prices up 5.9% year-on-year to an average of £203,131.
• North West England: Strong growth of 5.9%, with average prices at £237,045.
• West Midlands: Prices rose 5.5% to an average of £257,982.
• Scotland: More modest growth of 2.8%, with average prices at £208,957.

Outlook for 2025

As the property market navigates affordability pressures and tax changes, house prices are expected to grow moderately. Buyers are urged to consider long-term affordability amidst economic uncertainty, despite the short-term boost from stamp duty incentives.

Source : (BBC.com)