Halifax has revealed that house prices in November were 1.2% higher than in October, adding almost £3,000 to the cost of a typical UK home.
House prices in November were 7.6% higher than in the same month a year earlier – the strongest growth since June 2016.
In the latest quarter (September to November) house prices were 3.8% higher than in the preceding three months.
At just over £253,000, the average property price has risen by more than £15,000 since June. In percentage terms that equates to 6.5% – the strongest five-monthly gain since 2004.
Russell Galley, managing director of Halifax, said: “With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future. And while industry data shows agreed sales and new instructions to sell fell to their lowest level in the past five months, both remain at historically high levels and well above seasonal norms.
“As the March deadline for the stamp duty holiday approaches, properties sold to home-movers recorded a much higher rate of annual house price inflation (+7.9%) than first-time buyers (+5.8%). It is interesting to note that the stamp duty saving of £2,500 on a home costing £250,000 is now far outweighed by the average increase in property prices since July.
“The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year. However, the economic environment continues to look challenging. With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”
Guy Harrington, CEO of residential lender Glenhawk, added: “An unprecedented cocktail of pent up demand, a highly favourable lending backdrop and evolving homeowner trends has combined to deliver market outperformance of historical proportions in 2020. Whilst small cracks are appearing, and understandably so given the bleak outlook for 2021, a marked slowdown early next year, as many had predicted, looks increasingly unlikely.”