House prices rose by 10.3% in the year to November

The average UK house price rose by 10.3% in the year to November 2022, which is down from 12.4% in October, the Office for National Statistics (ONS) says.

Sellers saw the average price increase by £28,000 to £295,000 in that period.

England saw the highest rise of 10.9% to £315,000, Wales and Northern Ireland were next with 10.7% to £220,000 and £176,000 respectively.

In Scotland, prices grew by 5.5% to £191,000 – but its annual house price inflation has been slowing since April 2022.

The lowest price rise in England was for homes in London at 6.3%, with homeowners in the North West enjoying the highest increase of 13.5%.

‘Days of double-digit house price rises are numbered’

Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, said: “House prices dropped between October and November, and while they were still up 10.3% in a year, there’s every sign that the days of double-digit house price rises are numbered.

“Unfortunately, this is just the overture to the depressing dirge the market will be dancing to in the months to come.”

Ms Coles says that sales typically take around three months to complete, but they take four months currently – which means November’s sales reflect how the market was looking in late August and September.

That was before the mini-Budget on 23 September which led to a mortgage market mayhem.

Also, November’s mortgage approvals fell to their lowest level since June 2020 and the RICS residential survey showed buyer demand falling for the seventh successive month – along with prices.

Ms Coles said: “The shocking state of the market in October and November is likely to feed through into completion figures at the start of 2023 – at which stage house price growth is likely to slow significantly, and eventually turn negative.”

‘Shine a ray of hope for the property market in 2023’

Emma Cox, the managing director of real estate at Shawbrook, said: “The positive spell we’ve seen in the markets as of late will help to shine a ray of hope for the property market in 2023, but today’s house price figures show there’s still some catching up to do.

“If the economy continues on its positive trajectory into the next quarter, it could signify a ‘light at the end of the tunnel’ for first-time buyers, but landlords will also need to pay close attention as competition could soon return to the market.

“The seeds of economic improvement quickly spread, and I expect we’ll see many professional landlords working hard to provide a compelling rental offer for tenants in a busy lettings market whilst growing their portfolios with new purchases.”

Matthew Thompson, the head of sales at Chestertons, said: “Despite being a quieter time of year, the November market in London was fairly active after the initial panic caused by the mini-Budget.

“As mortgage rates settled, buyers came to terms with higher interest rates and realised that, in the majority of cases, it still made sense to buy.”

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