Average house price rises to hit record high

If you’re keeping an eye on the housing market, the latest Halifax House Price Index provides plenty of insight. November 2024 saw house prices rise for the fifth month in a row, with the average property now costing £298,083. This marks a +1.3% monthly increase and a +4.8% annual rise, the strongest growth rate since November 2022.

Whether you’re a first-time buyer, a homeowner considering your next move, or an investor, understanding these trends is essential for making informed decisions. Here’s a breakdown of the key points and what they might mean for you.

Key Highlights from the November 2024 Index

Average House Price: £298,083, a new record high.
Monthly Increase: Prices rose by +1.3% in November, the largest increase of the year so far.
Annual Growth: Property prices are up +4.8%, compared to +4.0% last month.
Regional Leaders: Northern Ireland recorded the strongest annual growth at +6.8%.

These figures reflect growing demand in the housing market, buoyed by improving mortgage availability and slightly easing interest rates.

Regional Breakdown

Different areas of the country are experiencing varied rates of growth. Here’s how the regions compare:

Northern Ireland: Leading the pack with a +6.8% annual rise, the average property now costs £203,131.
North West England: Strong growth of +5.9%, bringing the average property price to £237,045.
West Midlands: Prices rose by +5.5%, with the average home costing £257,982.
Scotland: More modest growth of +2.8%, with properties now averaging £208,957.
London: Retains the highest average house price at £545,439, up +3.5% annually.

These regional trends highlight opportunities and challenges depending on where you are looking to buy or sell.

Why Are Prices Rising?

According to Amanda Bryden, Head of Mortgages at Halifax, there are several factors behind this continued growth:

Improving Mortgage Market: Falling mortgage rates have boosted buyer confidence, encouraging more people to enter the market.
Stable Employment: Positive employment figures are supporting demand, giving buyers more confidence to commit to long-term investments.
Economic Optimism: While affordability remains a concern, anticipated decreases in interest rates heading into 2025 may further support the market.

That said, affordability challenges continue to test buyers, particularly as borrowing costs remain higher than the average from just a few years ago.

What This Means for Buyers

If you’re considering buying, these rising prices underscore the importance of getting the right advice. Here’s how you can navigate the market:

Be Prepared: Ensure your finances are in order and seek an agreement in principle before house hunting.
Consider Regional Opportunities: If you’re flexible, areas like Northern Ireland and the North West offer strong growth at more affordable prices.
Factor in Interest Rates: Locking in a favourable rate now could save you money as house prices continue to climb.

What This Means for Sellers

For sellers, this is a promising time to list your property. Rising demand and limited stock in many regions mean you may achieve a strong price. To make the most of the market:

Price Strategically: Use the latest market data to set a competitive yet realistic asking price.
Showcase Your Property: Present your home in the best possible light to stand out in a busy market.
Work with Experts: A good agent and mortgage adviser can help you secure the best outcome.

Navigating Affordability Challenges

While the market is thriving, it’s not without its hurdles. Rising prices and borrowing costs mean many buyers face tighter budgets. If you’re struggling with affordability, here are some tips:

Explore Government Schemes: Initiatives like shared ownership or Help to Buy may help you get on the ladder.
Consider an Offset Mortgage: This could lower your monthly payments by using savings to reduce interest.
Get Expert Advice: Speaking with a mortgage broker can help you find products tailored to your needs.

Looking Ahead to 2025

The outlook remains cautiously positive. Economic stability, paired with falling interest rates, is likely to keep demand steady. However, affordability will remain a key factor influencing growth.

If you’re thinking about buying, selling, or remortgaging in the coming months, now is the time to act. With the right guidance, you can navigate this market confidently and make the best decision for your circumstances.

How Kerr & Watson Can Help

At Kerr & Watson, we understand that navigating the housing market can feel overwhelming. That’s why we’re here to provide clear, straightforward advice tailored to your needs.

Whether you’re a first-time buyer, moving home, or exploring protection options, our experienced team can guide you every step of the way. Contact us today to discuss your situation and find the right solution for you.

By keeping you informed about the latest market trends, we aim to empower you to make confident decisions.

Get in touch with us to start your journey!

Read the full report for more insights on the current state of the UK housing market: Halifax Price Index November 2024

Source: Halifax

The information on this page is not tailored to any individual readers and should not be considered financial advice under any circumstances.

If you are seeking advice about a mortgage, you should speak with a qualified advisor.

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Frequently Asked Questions

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Is it better to use a mortgage broker or go directly to a bank?

Using a mortgage broker gives you access to multiple lenders rather than just one bank’s products. An independent, whole-of-market mortgage broker can compare options across high street and specialist lenders, helping you apply for the most suitable mortgage first time.

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What does a mortgage broker do?

A mortgage broker assesses your income, outgoings, credit history and deposit to recommend the most suitable mortgage for your circumstances. They compare lenders across the market, submit your application, liaise with underwriters and work alongside your conveyancer until your purchase or remortgage completes.

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Can a mortgage broker access better deals?

An independent mortgage broker can compare products across a wide range of lenders, including some intermediary-only deals. While rates are set by lenders, a broker helps ensure you apply for the most suitable and competitive option available.

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What does whole-of-market mean?

Whole-of-market means a mortgage broker can access products from a broad range of lenders rather than being restricted to one bank or a limited panel. This gives you more flexibility and potentially better-suited mortgage options.

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How much does a mortgage broker cost?

Mortgage adviser fees vary depending on the complexity of your case. Some advisers charge a flat fee, while others are paid via lender commission. At Kerr & Watson, our fees are explained clearly upfront so you understand exactly what you’re paying and why.

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How much can I borrow for a mortgage?

Most lenders offer between 4 and 4.5 times your annual income, subject to affordability checks. The exact amount depends on your income, monthly commitments, credit history and deposit size. A mortgage broker can provide a personalised estimate based on your full financial situation.

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How quickly can I get an Agreement in Principle?

An Agreement in Principle can often be arranged within 24 hours once your key financial details have been reviewed. This provides an indication of how much you may be able to borrow and can strengthen your position when making an offer on a property.

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How long does it take to get a mortgage offer?

A mortgage offer is typically issued within two to six weeks after submitting a full application. Timescales vary depending on the lender, valuation process and complexity of your case. Providing accurate documents from the outset can help speed up the process.

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What documents do I need to apply for a mortgage?

Most lenders require proof of identity, proof of address, recent payslips or tax calculations, bank statements and details of your deposit. Self-employed applicants may also need accounts or SA302s. Your mortgage adviser will confirm exactly what is required before applying.

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Do I need a deposit to get a mortgage?

Yes, most mortgages require a minimum deposit of 5% of the property value. A larger deposit can improve the range of lenders available to you and may secure a more competitive interest rate.

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Can I get a mortgage if I’m self-employed?

Yes, many lenders offer mortgages to self-employed applicants. You will usually need at least one to two years of accounts or tax returns. A specialist mortgage broker can help match you with lenders who understand variable or complex income structures.

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Can I get a mortgage with bad credit?

It may still be possible to get a mortgage with adverse credit, depending on the severity and how recent the issues were. Specialist lenders consider applicants who may have been declined elsewhere. An independent mortgage broker can review your options carefully before applying.

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What happens if I’ve been declined for a mortgage?

A mortgage decline does not necessarily mean you cannot secure a mortgage. Different lenders have different criteria. A mortgage broker can identify why you were declined and approach lenders whose criteria better fit your situation.

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Can I arrange my mortgage remotely?

Yes. Our mortgage advice process can be completed remotely via telephone, email and video call, allowing us to support our customers wherever you are located.

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Do I need a mortgage broker if I’ve already found a property?

Yes. Once you’ve found a property, a mortgage broker can help secure an Agreement in Principle, compare lenders, submit your application and manage the process through to completion.