House price growth hit a 15-year high in November as momentum in the market continued to show no signs of abating, according to the Halifax house price index.
Halifax’s latest index also shows that house prices grew by 1% in November to take the average price of a home to £272,992. House prices grew by 3.4% on a quarterly basis, which was the strongest reading by this measure since 2006.
Annually prices are up 8.2% but momentum was much slower in London, the historic powerhouse of property price growth, where a rise of just 1.1% was seen. Wales saw the strongest growth during the period.
Russell Galley, managing director at Halifax, said: “Typical values [are] up by almost £13,000 since June, and more than £20,000 since this time last year.
“Since the onset of the pandemic in March 2020, and the UK first entering lockdown, house prices have risen by £33,816, which equates to £1,691 per month.
“The performance of the market continues to be underpinned by a shortage of available properties, a strong labour market and keen competition amongst mortgage providers keeping rates close to historic lows.
“Those taking their first step onto the property ladder are also playing an important role in driving activity, with annual house price inflation for first-time buyers at 9.1% compared to 8.8% for homemovers.”
Tomer Aboody, director of property lender MT Finance, added: “With the highest growth in property prices in more than 15 years, there is continued confidence among buyers.
“Lack of stock means values are being pushed up as buyers take advantage of low interest rates and are prepared to push their personal boundaries when it comes to how much they are happy borrowing.
“More space is still the main requirement for buyers, with quality homes and locations most in demand.
“Although Wales has seen the highest growth in prices and London the lowest, this has to be put in perspective with Wales at the lower end of the value spectrum and therefore more affordable in the first place. For many people, property ownership in London remains out of reach, despite more subdued growth.
“Even with the new COVID variant and possible interest rate increases on the horizon, market sentiment remains impressively strong and resilient.”