The average price of a house in the UK has hit a record high as homeowners enjoy a fifth success month of increases in the value of their properties, Britain’s biggest mortgage lender has said.
Halifax’s monthly house price index found that the cost of an average home stood at £298,083 in November, up almost £5,000 on the previous record set in October.
Prior to the latest rise, the record average house price was set in June 2022, at £293,507.
House prices increased by 1.3% in November, the biggest increase this year and the fifth consecutive monthly rise.
On an annual basis property prices are up 4.8%, the highest rate of increase since November 2022.
Amanda Bryden, the head of mortgages at Halifax, said: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence.”
Bryden warned that despite the mini-boom, many potential buyers still faced significant affordability challenges.
“Buyer confidence may be tested against a changeable economic backdrop,” she said.
Nevertheless, Bryden said that positive employment figures and expectations of a further decrease in interest rates, which should flow through to better mortgage deals, were expected to continue to keep demand high in the property sector.
“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago,” she said.
Northern Ireland continued to experience the strongest property price growth in the UK and prices rose 6.8% on an annual basis in November, with an average house costing £203,131.
In England, the north-west recorded the strongest growth, at 5.9%, with properties now costing an average of £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 with last year.
“Those areas where there is limited stock to tempt buyers are seeing prices hold firm and indeed rising in some cases,” said Amy Reynolds, the head of sales at the estate agency Antony Roberts.
“Homes that are well-priced and well-presented continue to sell relatively quickly. Buyers may pause to assess the financial implications of a purchase but high-demand areas are likely to retain interest into the new year and beyond.”
Separate figures released by Nationwide earlier this week showed that house prices in the UK grew at the fastest rate in almost two years in November.