UK house prices stall as annual growth slows – Halifax

House prices were flat in November as the market paused after several steady months of gains, the latest Halifax House Price Index reveals.

The average home price now stands at £299,892, only £138 higher than October and just enough to set a new record.

Yearly growth dropped back to 0.7%, down sharply from October’s 1.9%.

Halifax said the weaker figure mainly reflects unusually strong increases recorded a year ago rather than any sudden change in market conditions.

Stable house prices

Amanda Bryden, the head of mortgages at Halifax, said: “This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade.

“Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.

“While slower growth may disappoint some existing homeowners, it’s welcome news for first-time buyers.”

She added: “Comparing property prices to average incomes, affordability is now at its strongest since late 2015.

“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”

Regional house prices

Northern Ireland again leads the table with annual growth of 8.9% and the average home costs £220,716.

Scotland followed with a 3.7% rise to £216,781, and Wales saw a 1.9% increase to £229,430.

In England, the North West recorded the strongest uplift at 3.2%, pushing the typical price to £245,070.

The North East also saw gains, rising 2.9% to £180,939.

London registered a 1% fall, while the South East dipped 0.3% and Eastern England slipped 0.1%.

Despite the drop, the capital remains by far the most expensive market, with homes averaging £539,766.

Property sector reaction to Halifax’s house price news

Nathan Emerson, the chief executive of Propertymark, said: “While stable house prices suggest the UK housing market is adapting to ongoing political and economic uncertainty, they are still unaffordable for many aspiring buyers, especially with annual regular pay growth at just 0.5%, according to recent data.”

Karen Noye, a mortgage expert at Quilter, said: “Affordability remains the biggest hurdle.

“Inflation has eased and there is growing expectation of a first rate cut in December, but mortgage pricing is still sensitive to shifts in swap rates and global pressures.

“Fixed rates have dipped, yet progress is gradual and high living costs continue to limit how far borrowing power can stretch, particularly for first time buyers.”

Jason Tebb, the president of OnTheMarket, said: “The housing market showed considerable resilience this year, shaking off external economic concerns and holding up remarkably well even when the stamp duty concession ended and when speculation was rife as to what property taxes the Budget might contain.

“However, national average figures conceal significant regional differences with the market performing stronger in the north than the more expensive south, where affordability is more of an issue.”

Tom Bill, the head of UK residential research at Knight Frank, said: “Both main UK indices show how pre-Budget uncertainty pushed house price growth close to zero.

“Clarity has now returned, but an array of tax rises, which include an income tax threshold freeze, will increasingly squeeze demand and prices.

“Offsetting that is the fact that mortgage rates are expected to drift lower next year as the base rate bottoms out at around 3.25%.”