House prices rose sharply in November

UK house prices increased by 1.2% in November to take annual price inflation back above 10%, according to the latest official figures.

The figures from the Land Registry showed that, as indicated by data from mortgage lenders, prices continued to rise in the autumn despite the full removal of the temporary stamp duty cut by the chancellor last September.

The increase to an average sale price across the UK of 270,708, more than made up for the 1.1% drop in prices in October in the immediate wake of the removal of stamp duty relief.

The Land Registry said prices rose fastest in the month in the North west and the South west, where the value of sales increased by 2.3 and 2.5% respectively.

Meanwhile Wales, the South west and the East of England have seen the biggest rises over the past year, with all of these areas reporting increases of more than 12% in the year to November 2021.

London saw prices rise just 0.2% in the month, and continues to report the lowest annual price rise of any area, with a 5.1% increase in prices in the capital.

Nicky Stevenson, managing director at estate agent Fine & Country, said bottlenecks in the supply of homes coming on to the market continued to tighten in November “pushing prices ever higher despite the tapering of tax incentives.”

“Looking ahead, those market fundamentals are unlikely to shift dramatically in the coming months, and this remains a red-hot sellers’ market,” she said.