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UK house prices remained flat in November, following October's modest growth, with annual growth slowing to its weakest since early 2024. Market caution ahead of the Autumn Budget contributed to stagnation, though affordability reached levels not seen since 2015, easing pressure on buyers. Regional trends varied, with slight declines in the south and modest gains in the north. Other lenders confirmed the slowdown, while Halifax expects gradual growth next year, aided by steady activity and anticipated lower interest rates.
In November, the UK housing market showed little change, with average house prices holding steady compared with October's modest 0.5% rise, according to Halifax. On an annual basis, price growth slowed sharply to 0.7% from 1.9% the previous month, marking the weakest yearly increase since March 2024. Halifax highlighted that the slowdown largely reflects a base effect, given stronger price growth a year ago. Advertisement
Amanda Bryden, head of mortgages at Halifax, noted that despite changes to Stamp Duty earlier this year and uncertainty before the Autumn Budget, property values remained stable. The cautious approach among buyers ahead of Finance Minister Rachel Reeves' budget announcement on November 26 was cited as a key factor influencing market stagnation.
While prices remained flat overall, regional differences persisted. Southern England, including London, experienced slight declines, whereas northern regions saw modest gains. Affordability improved significantly, with the price-to-income ratio reaching its most favourable level since 2015, providing relief to potential homebuyers.
Rival lender Nationwide reported a 0.3% increase in November prices, with annual growth slowing to 1.8%, suggesting a general market slowdown across lenders. Looking ahead, Halifax expects gradual price growth supported by steady market activity and an anticipated 25 basis point reduction in Bank of England interest rates, which are expected to reach 3.75% in December.
Source Reuters
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