UK House Price Growth Reaches Two-Year High in November, Led by Northern Ireland

The UK housing market demonstrated remarkable resilience in November, with property prices climbing at their fastest annual pace in two years. The Halifax House Price Index showed a year-on-year growth of 4.8%, surpassing both October's 4% and market expectations of 3.6%. This upward trajectory was accompanied by the fifth consecutive monthly increase, with house prices rising 1.3% from October, marking the largest monthly gain since June 2022.

UK house proces to news Heights: Northern Ireland lead the way in November's property boom. Photo: Unsplash

Key Highlights

1. Record-breaking average house prices: November’s average house price hit an all-time high of £298,083 (€359,477.67).

   
   

2. Regional leaders:

   • Northern Ireland outperformed the rest of the UK with annual price growth of 6.8%, driven by competitive mortgage rates and rising consumer confidence. The average property price in the region is now £203,131 (€244,977).

   • England’s North West posted robust growth of 5.9%, with average property prices at £237,045 (€285,838.34).

   • In contrast, Scotland recorded a more modest annual rise of 2.8%, with homes costing £208,957 (€251,996.92) on average.

     
     

3. London’s premium market: Average house prices in the capital rose 3.5% year-on-year, reaching an eye-watering £545,439 (€657,894.89)—the highest in the UK.

   
   

Market Drivers

Several factors contributed to the market's robust performance:

• Improved mortgage rates: Easing borrowing costs fueled buyer demand and bolstered confidence.

• Economic stability: Lower unemployment and rising wages outweighed lingering inflation concerns, encouraging more activity in the housing sector.

• Budget clarity: Greater certainty around government fiscal plans helped stabilize the market.

Related: Ireland Needs Tens of Thousands More Homes Annually to Meet Housing Demand

Challenges Ahead

Despite the positive trends, affordability remains a critical concern. Amanda Bryden, Head of Halifax Intermediaries and Scottish Widows Bank, highlighted that while easing mortgage rates support demand, "buyer confidence may be tested against a changeable economic backdrop." Looking ahead, stable employment figures and expected rate cuts in 2025 could sustain growth, albeit at a slower pace.

Source: Euronews