Following the release of Halifax’s HPI data that showed that House prices increased by +1.3% in November, industry experts have shared their thoughts.
Nigel Bishop of buying agency Recoco Property Search says: “There has been a general uplift in buyer demand in November which impacted on property values and enabled some sellers to achieve their asking price. In some parts of the country, however, homeowners are experiencing seller fatigue after failing to sell earlier this year and are more open to lowering their asking price. We therefore advise house hunters to conduct careful research of their chosen area’s property market as it could be very different from the national picture and give them the upper hand during price negotiations.”
Nick Gunga, Managing Director at Purplebricks, says: “After five consecutive monthly rises in UK house prices, most recently at the fastest rate in two years, there are certainly reasons to be optimistic about the strength of the market. However, a turbulent economic environment, combined with policy changes and the full impact of the Autumn Budget, means progress is still on uneven footing. This is particularly true for first-time buyers, many of whom will now be captured by the reduced stamp duty tax threshold from April 2025. Rather than holding steady for the foreseeable future, it seems more likely that market activity will continue to fluctuate in response to the changing landscape.”
Karen Noye, mortgage expert at Quilter: “The latest Halifax House Price Index shows that house prices significantly rose by 1.3% in November providing a clear indication that the UK housing market is showing signs of resilience despite the economic pressures that have dominated much of 2024. The average house now stands at a record £298,083. This increase follows a period of market stagnation and reflects a rebound in buyer activity, which has been supported by declining mortgage rates and greater market stability.
“Recent data from the Bank of England has already pointed to rising mortgage approvals, which reached their highest level since mid-2022. Combined with a reduction in quoted mortgage rates, this suggests that buyers are returning to the market, encouraged by the more favourable lending conditions. However, affordability remains a critical issue, particularly for first-time buyers who are still grappling with high borrowing costs and larger deposit requirements, factors that have constrained demand over the past year.
“The rise in house prices will offer some relief to existing homeowners who may have been concerned about a prolonged market downturn. Yet, questions remain about how sustainable this recovery might be. The Bank of England’s recent decision to reduce interest rates to 4.75% has eased some of the pressure on mortgage holders, but for many households refinancing in the coming months, monthly repayments will still rise significantly compared to previous fixed-rate deals.
“In addition to borrowing costs, broader economic challenges, such as the freeze on income tax thresholds and the rising cost of living, continue to weigh heavily on household finances. For the housing market to maintain momentum, a balance will need to be struck between supporting demand and addressing affordability constraints, particularly as higher interest rates are likely to remain a feature of the market for some time.
“Today’s figures from Halifax suggest a cautiously optimistic outlook, but it is clear that the market remains finely balanced. Government policies aimed at supporting housebuilding and improving access for first-time buyers will be crucial if this recovery is to translate into long-term stability. As we look ahead to 2025, much will depend on whether these early signs of recovery can be sustained in the face of ongoing economic uncertainty.”
Nicky Stevenson, Managing Director at national estate agent group Fine & Country, said: “The housing market continues to show strong growth despite challenges from the Autumn Budget and inflation, with resilience fuelling hopes for a strong year-end finish.
“Market activity typically slows at this time of year as buyers rush to finalise moves before Christmas or pause their plans to focus on the festive season. However, this rise in house prices — both monthly and year-on-year — suggests a shift, with many buyers forging ahead. This surge may be driven by a desire to complete transactions ahead of the tax increases announced by the Chancellor in October. Nationwide’s November House Price Index confirms this trend, showing the fastest annual price growth in two years at 3.7%.
“One key change impacting homebuyers is the adjustment to stamp duty, coming in April 2025. The current £250,000 threshold for home movers will revert to £125,000, while the first-time buyer exemption will drop from £425,000 to £300,000. It’s not uncommon to witness a flurry of activity following shifts in policy or economic indicators, as those impacted make quick decisions to mitigate potential costs. However, looking forward, tax increases following the Budget could weaken buyer purchasing power, and economic uncertainty has caused some of the most competitive mortgage rates to vanish.
“While tax increases and rising prices — with inflation now sitting at 2.3% — may prompt some consumers to tighten their belts in the new year, experts remain optimistic about the housing market’s trajectory. Zoopla forecasts a 2.5% rise in house prices and a 5% increase in transactions by 2025. First-time buyers are expected to be a key driver of this growth, supported by improving affordability from higher incomes and lower mortgage rates. With these factors in play, the housing market enters 2025 with renewed momentum and a positive outlook, signalling continued growth despite headwinds.”
