Average UK house prices increased by 3.3%, to £290,000, in the 12 months to November 2024 (provisional estimate); this annual growth rate is up from 3.0% in the 12 months to October 2024.
Month-on-month the average UK house price decreased by 0.4% from £290,959 in October 2024 to £289,707 in November 2024.
This is according to the latest data from the Office for National Statistics (ONS) which also shows that average house prices increased in England to £306,000 (3.0%), in Wales to £219,000 (3.0%) and in Scotland to £195,000 (4.7%), in the 12 months to November 2024.
The North East was the English region with the highest house price inflation in the 12 months to November 2024, at 5.9%. This was up from 4.6% in the 12 months to October 2024.
Annual house price inflation was lowest in London, with a decrease of 0.1% in the 12 months to November 2024. This was up from a decrease of 0.4% in the 12 months to October 2024.
Commenting on the latest figures ModaMortgages director of sales and distribution Darrell Walker said: “Remembering the uncertainty that gripped the market heading into the Autumn Budget, the 0.4% month-on-month fall in house prices between October and November last year is not surprising. However, importantly, the annual increase remains strong at 3.3%, which is a clear sign of the housing market’s resilience in the face of the economic and political challenges that homebuyers and investors had to navigate for much of 2024.
He added: “Should borrowing costs ease and once the full impact of the Autumn Budget has been digested, the market is anticipating an uptick in activity, which will likely drive further growth in ONS data over the next few weeks and months.
“Financing will become more accessible, but it’s crucial that landlords focus on simplicity and speed to take full advantage of the expected house price growth – potentially as much as 4% – that many economists and leading agents are forecasting for 2025.”
RAW Capital Partners chief executive Tim Parkes said: “The annual rate of house price growth once again points to the property market’s resilience during a period of significant uncertainty brought on by a change in government and an elevated cost of borrowing.
“As such, the fact that the market continued to perform positively is a promising sign that further growth can emerge as uncertainty recedes and positive investor sentiment returns.
He added: “Indeed, recent data also paints a promising picture for the market’s outlook. For instance, the number of prospective buyers is now at its highest level in two years, and half of the homes in the UK increased in value over 2024, figures from Propertymark and Zoopla respectively show.
“Combined with the potential for a more relaxed monetary environment in the months ahead – the Bank of England is expected to cut the base rate between two and four times this year – these figures suggest that the market is poised for more meaningful expansion in 2025.”
Garrington Property Finders chief executive Jonathan Hopper agreed that the property market had made a brisk start to the New Year, with estate agents reporting a surge of interest from both buyers and sellers.
But he said November’s fall in average prices served as a chastening reminder to sellers of just how much competition they face in securing a buyer.
“Compared to October, the prices paid fell in more than half of England’s regions in November. Even though the annual figures still show a reassuringly sedate upward trajectory, the monthly data reveals just how keen pricing has become.
“Prices fell by a full 1% in London during November, which may be a whiplash effect from the tax rises announced by the Chancellor in her Budget at the end of October. The capital is once again seeing prices fall on an annual basis too, as price-sensitive buyers negotiate hard on price or look elsewhere.”