Figures show house prices growth rallies in November | moneyfacts.co.uk
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nigel woollsey

Nigel Woollsey

Online Writer
Published: 09/12/2019

According to the latest House Price Index data from Halifax, house prices have shown a marked increase, rising by 2.1% compared to November 2018. This change is the largest monthly increase since February this year, with prices increasing by 1% compared to October 2019.

As a result, the average price of a house in the UK now stands at £234,625 – a rise of some £4,836 since November last year when it stood at £229,789.

Commenting on the latest House Price Index figures, Russell Galley, Managing Director of the 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.

“Prices are now up by £3,904 since the start of the year. 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.”

Mortgage approvals fall slightly from September

While house prices are on the rise, figures from the Bank of England show that mortgage approvals dropped to 64,602 in October – a fall of some 1.8% compared to the number of successful mortgage applications in September 2019 when approvals had risen by 0.3% month-on-month.

The fall in these seasonally-adjusted figures is mirrored in the RICS Residential Market Survey for October, which showed that new buyer enquires and agreed sales also fell for the second consecutive month.

Mortgage competition drives down rates

As outlined in our recent article ‘Mortgage rates and product fees see a year-on-year fall’, the mortgage marketplace remains competitive, with both rates and fees falling compared to last year.
Currently, as seen in our first-time buyer comparison charts, those with a 10% deposit or equity can apply for a mortgage with Yorkshire Building Society at an initial rate of 1.79% (4.4% APRC) fixed until 31 March 2022. Meanwhile, those moving home can take advantage of Halifax’s low rate of 1.17% (3.8% APRC) fixed until 28 February 2022 if they have equity of least 40% (60% loan-to-value).

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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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