House prices see surprise bounce back as buyers make the most of cheap mortgage deals and a shortage of properties for sale bolsters the market
- On an annual basis, the cost of a home grew by 2.1% in the year to November
- The average cost of a home in Britain is now £234,625, Halifax's data suggests
- This is the highest average property price in the history of Halifax's index
- The figures contrast with other estimates such as the recent Nationwide one
The cost of snapping up a home across the country rose at the fastest pace for seven months on an annual basis last month, new research from Halifax reveals.
Property prices increased by £4,836, or 2.1 per cent, to £234,625 in the year to November, the new data shows.
This is the highest average property price in the history of Halifax's house price index since its inception in 1983, the bank revealed to This is Money.
On the up: The cost of snapping up a home rose at the fastest pace for seven months in November, fresh data from Halifax shows
Last month, the average cost of a home rose by 1 per cent, which is the highest month-on-month rise seen since February this year.
House prices are now £3,904 more expensive than they were at the start of the year. In fact, average house prices are now the highest they has been all year, surpassing the previous high of February's £234,195.
Between September to November house prices were 0.2 per cent higher than in the previous three months.
The firmer Halifax house price data follows Nationwide's report of a 0.5 per cent month-on-month rise in property prices last month, marking the biggest hike on its measure since July 2018.
'November's pick-up in house prices comes despite housing market activity currently faltering amid an unappetising cocktail of Brexit, economic and domestic political uncertainties', Howard Archer, chief economist at the EY Item Club, said.
Russell Galley, managing director at Halifax, said: 'Average house prices rebounded somewhat in November, with annual growth of 2.1 per cent being driven by the biggest monthly rise since February, following two months of modest falls.'
Shifts: House price fluctuations on a monthly, quarterly and annual basis
Mr Galley said that while a 'degree of uncertainty remains evident', it is clear that cheap mortgage deals and a shortage of homes coming up for sale is bolstering the market.
He added: 'It is these issues which we believe will continue to underpin the resilience evident evident in the market for most of 2019.
'Over the medium term we expect the emerging trend of modest gains to continue in the next year.'
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'It might be a little surprising to see the biggest monthly rise in house prices since February but the end of year can see a spike in sales as people aim to be in their new home for Christmas.
'Mortgage rates are cheaper than ever, with lenders continuing to compete for business. Those who can't compete on rock-bottom rates are offering tempting incentives such as no fees or free valuations, and loosening criteria.
'It is a good time to be a borrower - that is, if you can find a property that you wish to buy.'
In short supply: The number of homes on estate agents' books has been low in recent years
Meanwhile, Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors, said: 'Despite significant political and economic uncertainty, and a shortage of stock, serious buyers and sellers - particularly we are finding of smaller family houses - are still negotiating hard and taking the medium/longer-term view that some broader stability and confidence will return soon.'
One industry insider, Lee Pickett, a partner at DWF, questioned the plausibility of Halifax's latest data. Mr Picket said: 'At 2.1 per cent, the annual rise in the Halifax index is three times that of Nationwide's 0.8 per cent annual growth figure.
'Whilst the Halifax House Price Index has been more positive on the housing market this year September's methodology tweak was supposed to bring it closer to other house price indices. That doesn't appear to be the case this month.'
Recent data from HM Revenue & Customs revealed that there were 103,680 residential house sales in October, marking a 4.3 per cent increase from September and the highest rate since July 2017.
In terms of how many mortgages are being approved, there were 64,602 residential mortgages secured in October, which is 1.8 per cent lower than in September, HM Revenue & Customs said.
Fluctuations: House price fluctuations revealed in Halifax's latest house price index
Most watched Money videos
- German car giant BMW has released the X2 and it has gone electric!
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Dacia Spring is Britain's cheapest EV at under £15,000
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mini unveil an electrified version of their popular Countryman
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Mail Online takes a tour of Gatwick's modern EV charging station
- How to invest to beat tax raids and make more of your money
- Co-op Bank agrees possible £780m takeover by Coventry...
- How LVMH is going for gold at Paris Olympics: Luxury...
- G7 fights for Ukraine cash as Russia's economy booms -...
- MARKET REPORT: Airlines soar as Easyjet eyes a record summer
- Rentokil shares slip as investors mull mixed picture on...
- Dunelm shares slip amid 'challenging sales environment'
- AJ Bell shares jump as it tops 500,000 DIY investors with...
- Deliveroo returns to order growth as international trade...
- Hunt raises alarm over bid for Royal Mail as 'Czech...
- Foxtons hails best under-offer homes pipeline since...
- Two female BP execs to leave in first reshuffle since...
- Average car insurance bills rocket to almost £1,000:...
- My husband managed all my money. Now he's left me, what...
- BUSINESS LIVE: EasyJet winter losses narrow; Hipgnosis...
- Neil Woodford is back as a finfluencer: You may remember...
- EasyJet narrows winter losses as holiday demand...
- Hipgnosis agrees £1.1bn takeover deal by Concord Chorus
- 'I'm neither hero nor villain', insists disgraced fund...