The average house price in the UK has hit a record high as homeowners enjoy a fifth month of successful growth in the value of their properties, Britain’s biggest mortgage lender said.
Halifax’s monthly house price index found the average house cost stood at £298,083 in November. it is close to £5,000 of the previous record set in October.
Prior to the most recent rise, the average house price in June 2022 was set at £293,507.
House prices rose 1.3% in November, the largest increase this year and the fifth consecutive month of rises.
Property prices are up 4.8% on a year-on-year basis, the highest increase since November 2022.
Amanda Bryden, head of mortgages at Halifax, said: “The latest figures continue to show improved levels of demand for mortgages, as improvements in mortgage seller buyer confidence.”
Bryden warned that despite the mini-boom, many potential buyers still face significant affordability challenges.
“Buyer confidence has been tested against the changing economy,” he said.
However, Bryden said the employment figures are positive and hope for a further decrease in interest ratesthose going through better mortgages were expected to maintain high levels in the property sector.
“This house price growth should continue, although at a moderate pace borrowing costs remain above the average of a few years ago,” he said.
Northern Ireland experienced the strongest price growth in the UK and prices rose 6.8% year-on-year in November, with the average house costing £203,131.
In England, the north west recorded the largest increase, 5.9%, with properties now averaging £237,045.
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London retained the top spot for the highest average house price in the UK at £545,439, up 3.5% compared to last year.
“Those areas where there is limited supply are tempting buyers, seeing prices hold firm and in some cases rise,” said Amy Reynolds, head of sales at estate agency Anthony Roberts.
Well-priced and furnished homes continue to sell relatively quickly. Buyers may want to pause to consider the financial implications of the purchase, but high-demand areas are likely to retain interest into the new year and beyond.
Separate figures were released by Nationwide earlier this week he showed That house prices in the UK grew at the fastest rate in nearly two years in November.