Property prices dropped by -1.0% on an annual basis compared to 3.1% last month while a typical UK home now costs £283,615, around £1,300 more than last month.
Kim Kinnaird, Director, Halifax Mortgages, said: “UK house prices rose for the second month in a row, up by +0.5% in November or £1,394 in cash terms, with the average house price now sitting at £283,615. Over the last year, despite the wider economic headwinds, property prices have held up better than expected, falling by a relatively modest -1.0% on an annual basis, and still some £40,000 above pre-pandemic levels.
“The resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand. That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers. With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.
“However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”
Nations and regions house prices
Northern Ireland is the strongest performing nation or region in the UK, with house prices increasing by +2.3% on an annual basis. Properties in Northern Ireland now cost on average £189,684, which is £4,294 higher than the same time last year.
House prices in Scotland also continue to show resilience, though growth has flattened over the last year (0.0%), with the average property in the country now costing £203,116.
Wales recorded one of the lowest annual falls (-1.5%), with homes selling for an average of £215,787 in November.
At the other end of the scale, property prices in the South East fell most sharply when compared to other UK regions over the last year (-5.7%) to £373,943, a drop of -£22,702.
London retains the top spot for the highest average house price in the UK, at £524,592, though prices in the capital have now fallen by -3.8% on an annual basis.
