Property values increase at highest rate this year

The Halifax House Price Index for November 2024 shows that house prices climbed by +1.3% on a month to month basis.

This was the fifth consecutive monthly increase registered by Halifax and the largest monthly increase so far this year.

House prices also increased by +4,3% annually.

This annual rate of growth was up from +4% the previous month as the property market continues to accelerate following the Autumn Budget.

Amanda Bryden, head of mortgages at Halifax said, “UK house prices rose for the fifth month in a row in November, up by +1.3% in the month – the

biggest increase so far this year. This pushed the annual growth rate up to +4.8%, its strongest level

since November 2022. As a result, the record average house price we saw in October edged higher still, with a typical property now costing £298,083.

“Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage

rates boost buyer confidence. However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop.

“As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”

Director of Benham and Reeves, Marc von Grundherr, said, “It’s full speed ahead following the Autumn Budget, with the monthly rate of house price growth in November the largest seen so far this year.

It’s amazing what a little urgency can do and with stamp duty costs now set to increase from April next year, buyers are acting with a far greater degree of intent which is driving the market forward at pace.

Of course, affordability remains an issue and many buyers are continuing to struggle with the high cost of securing a mortgage. However, what we are seeing is a measured return to health, driven by increasing buyer demand, which is very good news for sellers and the wider property market.”

CEO of Yopa, Verona Frankish said, “We’ve seen an immediate reaction from buyers following the Autumn Budget and this uplift in market activity is driving current house price performance, however, those who are keen to complete before stamp duty costs increase really need to be acting sooner rather than later.

There is still time to get a sale over the line before April next year but the property purchasing process can be a complex one riddled with delays. Those who are currently house hunting need to be aware that they could well miss the deadline and so they need to factor in the potential increase in costs that this would bring.

Stretching your budget to its maximum in order to secure a property at speed and ahead of other buyers may well work in the short term, but it could prove problematic if you are required to pay more in stamp duty having completed beyond 31st March next year.”