UK house prices rise for the second month in a row.
The Halifax House Price Index for November 2023 was published today – let’s review.
The data shows that UK house prices rose for the second month in a row, up by +0.5% in November or £1,394 in cash terms, with the average house price now sitting at £283,615.
London retains the top spot for the highest average house price in the UK, at £524,592, although prices in the capital have now fallen by -3.8% on an annual basis.
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. 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.
Economic conditions remain uncertain, and pressures such as inflation, the broader cost of living, overall employment rates and affordability, mean that we can expect to see downward pressure on house prices into next year.
In summary:
- Average house prices rose by +0.5% in November, following a rise of +1.2% in October.
- Property prices dropped by -1.0% on an annual basis (vs -3.1% last month).
- Typical UK home now costs £283,615, around £1,300 more than last month.
- South East England continues to see most downward pressure on house prices.
The next Halifax House Price Index is scheduled for release on Friday 5th January 2024.
