UK house prices rose further in November, official data showed on Wednesday, on the back of strong demand for property.
According to the latest house price index from the Office for National Statistics, average UK house prices rose 3.3% in the 12 months to November, to £290,000. That compares to October’s growth rate of 3%.
All parts of Great Britain saw price hikes, led by gains in Scotland, where average prices jumped 4.7% to £195,000. In England and Wales average prices rose 3% to £306,000 and £219,000 respectively.
Iain McKenzie, CEO of The Guild of Property Professionals, said: “A word that is frequently used about the property market is resilient, and this is because it continues to defy expectations. With the market starting in a stronger position than last year, it is expected that prices will continue to marginally grow over the course of the year, however, realistic pricing remains key.
Verona Frankish, CEO of Yopa, commented: “The November figures show a marginal reduction in the monthly rate of house price growth, which is to be expected in the run up to Christmas. However, on an annual basis, house prices have continued to climb for the last eight months and it’s now full steam ahead where the property market is concerned, as homebuyers across England look to beat the stamp duty deadline.
“We’ve seen many times before how a sense of urgency drives demand across the market and the result of this heightened buyer activity is likely to be further house price growth over the coming months.”
Jonathan Handford, managing director at Fine & Country, said: “House prices exceeded expectations in November, continuing their upward momentum despite the typically quieter market period and the ongoing economic challenges.
“With the stamp duty threshold set to decrease in April, some people sitting on a deposit will now move to secure deals before the deadline. This could spark an uptick in market activity, but recent data suggests this could be a short-term reaction rather than a sustained trend.”
Stacy Eden, partner and national head of Real Estate at RSM UK, commented: “Property prices are slowly increasing with inflation, slowly falling interest rates and rising consumer income. Looking ahead, we expect to see house prices to continue with a gentle upward trend underpinned by the chronic lack of supply. The housing affordability index over the last couple of years has also fallen from close to 8.5 to just under 7.5, allowing for future house price rises. Concerns about measures announced in the budget and poor economic growth in 2025 may however mean house prices rise less than expected this year.
Private rents also continued to mount. According to a provisional estimate from the ONS, they surged 9% in the 12 months to December, marginally lower than both November’s 9.1% hike and March’s all-time high of 9.2%.
Renters in England now pay an average of £1,369 per month.
Read the orginal article: https://propertyindustryeye.com/house-prices-continue-to-rise-but-affordability-concerns-remain/
