Increase in house prices in November is slightly lower than in October, but market continues to show signs of recovery
Average house prices increased by 0.6% in November month-on-month, which is slightly down from the 1.2% rise seen in October but still indicates a continued recovery of UK property prices.
Compared to this time last year, house prices in November have dropped by 1%, whereas in October they were down 3.1% year-on-year.
The house price index found that the average UK home now costs £283,615, around £1,300 more than last month.
House prices rise again in November, and are down by a “modest” 1% year-on-year
However, house prices in the South-east of England are facing the most downward pressure compared to other regions, with house prices having fallen by 5.7% over the last year. London house prices have decreased by 3.8% on an annual basis.
House prices in Wales recorded one of the lowest annual falls, a decrease of 1.5%, compared to November last year.
HMRC monthly property transaction data shows that in October this year, UK home sales decreased by 21% compared to the same month in the previous year, and were 3% lower than September 2023.
Bank of England figures show the number of mortgages approved to finance house purchases increased in October 2023, by 8.5% to 47,383. Year-on-year, mortgage approvals decreased by 17.1%.
Kim Kinnaird, director at Halifax Mortgages, said: “Over the last year, despite the wider economic headwinds, property prices have held up better than expected, falling by a relatively modest -1.0% on an annual basis, and still some £40,000 above pre-pandemic levels.
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“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. That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers. 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”.
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