º£½ÇÊÓƵ house prices have hit an all-time high, thanks to lower mortgage rates which have boosted buyer confidence for the fifth consecutive month.
The Halifax House Price Index reported a 1.3% rise in November, the largest increase this year, pushing the annual growth rate up to 4.8%, the highest level since 2022, as reported by .
According to the lender's data, the average º£½ÇÊÓƵ property is now valued at £298,083, while in London, the average house price surged 3.5% to £545,439, solidifying the capital's position as having the highest average property prices in the º£½ÇÊÓƵ.
Amanda Bryden, head of mortgages at Halifax, commented: "Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence. " "However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop."
With the number of mortgage approvals reaching its highest level since August 2022 in October, according to the Bank of England, and the average two-year and five-year mortgage rates now standing at around 5.1% and 4.8% respectively, as reported by Rightmove, house prices are expected to continue their upward trend.
Bryden predicts that demand will persist into the new year, particularly as the market responds to employment figures and a decrease in interest rates. He further commented: "This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago."
Nigel Bishop from Recoco Property Search noted that the increase in buyer demand has enabled sellers to meet their asking prices.
However, he observed that some "homeowners are experiencing seller fatigue after failing to sell earlier this year and are more open to lowering their asking price."
Bishop advised potential buyers to thoroughly research their chosen area's property market as it could differ significantly from the national picture, potentially giving them an advantage during price negotiations.
