Average house price hits record high of £298,083

UK house prices rose at their fastest monthly rate of the year in November with further increases expected next year, the Halifax has said.

The UK’s largest mortgage lender, part of Lloyds Banking Group, said property values were up 1.3% compared with October – the fifth consecutive monthly rise.

The average house price hit the latest record high of £298,083 last month, surpassing a peak of £293,999 in October.

On an annual basis, house prices have now seen the fastest growth for the past two years.

Halifax said house prices increased by 4.8% in November compared with a year earlier, up from 4% growth in October. That was the strongest annual growth for two years, echoing the view of rival lender, the Nationwide, earlier in the week.

This reflects demand from buyers, but also the relative weakness of the market a year ago.

“Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence,” said Amanda Bryden, head of mortgages at Halifax.

She said that stronger employment, as well as falling interest rates, would be expected to bring further house price rises for the rest of this year and into next year.

“However, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop,” she added.

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.