UK House Prices Hit Record High in November 2024

UK House Prices Hit Record High in November 2024: Key Insights for Buyers and Investors

House Price Surge in October 2024

• Average House Price Increase: 0.2% in October

• Annual Growth Rate: 3.9%

• New Record Value: £293,999 for the average UK home

House prices in the UK rose by 0.2% in October, marking the fourth consecutive monthly increase, according to Halifax, the UK’s largest mortgage lender. This increase has set a new record high for property values, with the typical home now valued at £293,999 – surpassing the previous peak of £293,507 set in June 2022.

Annual Growth Slows Slightly but Remains Strong

On an annual basis, UK property prices grew by 3.9% in October, a modest drop from the 4.6% increase recorded in September. This sustained growth underscores the market's resilience despite a challenging economic backdrop and rising interest rates.

Interest Rate Cuts Expected to Boost the Market

The Bank of England is anticipated to announce an interest rate reduction from 5% to 4.75%, which could positively impact mortgage affordability. Lower rates may encourage lenders to offer more competitive mortgage deals, providing a boost to potential buyers and investors.

Expert Insights: UK House Price Resilience

Amanda Bryden, Head of Mortgages at Halifax, commented: “It may be surprising to see house prices reaching these levels given the economic climate, but they’ve remained notably stable. Despite higher interest rates, property values have levelled off over the past two and a half years, showing only a 0.2% increase overall. This contrasts significantly with the 21% rise recorded between January 2020 and mid-2022.”

Regional House Price Trends in the UK

Northern Ireland: Leading the UK in annual growth, Northern Ireland saw a 10.2% rise in property values. The average home is now priced at £204,242.

Wales: House prices in Wales rose by 5.6% compared to last year, with the average property now valued at £225,543.

Scotland: Scotland saw the lowest annual growth, with property values up by only 1.9%. The average Scottish home is now worth £206,480.

North West of England: The North West experienced a strong 5.9% increase in house prices, bringing the average property price to £235,587.

London: As the UK’s most expensive housing market, London’s average property value rose by 3.5% over the past year to reach £543,308.

What This Means for UK Homebuyers and Investors

For homebuyers, the expected reduction in interest rates could mean improved affordability and more favourable mortgage options. For investors, strong regional price growth – particularly in Northern Ireland and the North West – suggests opportunities for capital appreciation in these areas.

Stay updated with Mortgage One for the latest insights and guidance on navigating the UK mortgage and property markets. Whether you’re buying your first home or expanding a property portfolio, our expertise can help you make informed decisions in a dynamic market.