Getty Images
UK house prices rose at their fastest monthly rate of the year in November and further increases are expected next year, the Halifax newspaper said.
The UK's largest mortgage lender, part of Lloyds Banking Group, said property values were up 1.3% compared to October, the fifth consecutive monthly rise.
The average house price hit the latest record of £298,083 last month, surpassing the peak of £293,999 reached in October.
On an annual basis, house prices have seen the fastest growth in the last two years.
Halifax said house prices rose 4.8 per cent in November from a year earlier, up from 4 per cent in October. This is the strongest annual growth in two years, echoing the view of rival lender Nationwide earlier in the week.
This reflects buyer demand, but also the relative weakness of the market a year ago.
“The latest figures continue to show improving mortgage demand levels, as a fall in mortgage rates boosts buyer confidence,” said Amanda Bryden, head of mortgages in Halifax.
She said strengthening employment, along with falling interest rates, was expected to lead to further increases in house prices for the rest of this year and next year.
“However, many potential buyers and movers still face significant affordability issues and buyer confidence could be tested in a changing economic environment,” she added.
Jonathan Hopper, managing director of Garrington Property Finders, said: “Hesitation has turned to haste in some parts of the market, particularly among first-time buyers who are rushing to complete their purchases before the duty thresholds change stamp at the end of March. »
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, also believes the rise is linked to stamp duty issues.
“This means that house prices are likely to rise as the deadline approaches, as buyers and sellers fight to get around the tax hike. Beyond the start of April, the “The market will likely be calmer as buyers choose to purchase less expensive homes,” she said.
Where are prices rising the fastest?
London remains the most expensive place in the UK to buy a house, with the average property there costing £545,439, according to the Halifax.
Northern Ireland continues to record the highest growth in house prices in the UK, with an average price of £203,131.
In England, the North West region continued to see the strongest growth, with an increase of 5.9% compared to last year. The average property there now costs £237,045.
House prices have increased by 5.5% compared to last year in the West Midlands, with the average house costing £257,982.
Halifax said Scotland had seen a slight increase in house prices, with the average property now costing £208,957, 2.8% more than the previous year.
Halifax's house price data is based on its own mortgages, which does not include buyers purchasing homes outright or leases. Cash buyers account for about a third of home sales.
