Halifax Bank House Index

Annual house price growth rises to 2.1%



Annual house price growth has increased to 2.1%, according to the latest data.

The Halifax UK House Price Index for November revealed that month-on-month prices rose by 1%, while those for the period September to November saw an increase of 0.2% compared with the preceding three months (June to August).

Average house prices are now up by £3,904 since the start of the year to £234,625.

Russell Galley, managing director at Halifax, said: “Average house prices rebounded somewhat in November, with annual growth of 2.1% being driven by the biggest monthly rise since February, following two months of modest falls. 

“While a degree of uncertainty remains evident, it’s also clear that buyers and sellers are responding to factors such as improved mortgage affordability and the limited supply of available properties. 

“It is these issues which we believe will continue to underpin the resilience evident in the market for most of 2019. 

“Over the medium term, we expect the emerging trend of modest gains to continue into next year.”

Guy Harrington, CEO at property lender Glenhawk, added: “Are we set for lift-off? 

“1% month-on-month growth vs the forecasted -0.7% is quite a result.

“The general election is going to be a catalyst of some sort, and with all signs pointing towards a majority Conservative government, we could be saying ‘au revoir’ to the inertia that has characterised the market for far too long.” 

Lucy Pendleton, founding director of independent estate agents James Pendleton, commented: “The capital has always been a bellwether for the wider market, so, as night follows day, barring any Brexit-related cataclysms, current trends should be positive news for homeowners nationwide in early 2020.”

Andrew Montlake, managing director at the UK-wide mortgage broker Coreco, explained that within the mortgage market, there is "a sense of calm".

“Mortgage rates are so low that despite the political noise, people are getting on with their lives and moving home.

"The pragmatism in the market is being supported by the fact sellers have also become more realistic around asking prices."

HMRC monthly data showed a rise in UK home sales in October to the highest level since July 2017.

However, Bank of England statistics revealed a 1.8% month-on-month fall in mortgage approvals in October.


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