The housing market in England and Wales is set to have a "positive outlook" for the next few months, after prices increased slightly in November, e.surv has stated.

The firm’s house price index (HPI) revealed that the average house price in England and Wales increased by 0.2% month-on-month in November, to £358,828.

However, this price is 1.5% lower than a year earlier, equating to more than 5% below the previous peak reached in late 2022.

Director at e.surv, Richard Sexton, said: "Falling interest rates have and will continue to support buyer affordability over the coming months and the imminent end of the current stamp duty reliefs in April of next year will increase buyer confidence and urgency respectively over the coming months.

"But these figures reflect buyer and seller activity before the budget and so are founded on a robust job market that reflects low levels of unemployment and good pay and income increases that have buoyed sentiment. It’s worth remembering that the household saving rate in the UK increased to 10% in the second quarter of 2024 from 8.9% in the first quarter of 2024."

The HPI revealed that across England and Wales in October, the North West (£251,321), the West Midlands (£283,086) and Yorkshire and the Humber (£244,715) were the best performing regions month-on-month, with prices increasing by 0.9% respectively.

Month-on-month, London saw its average house price decrease by 0.2% to £675,248.

Sexton concluded: "The headline 1.5% year-on-year decrease in house prices seen across England and Wales in November would shrink to 0.7% if we exclude London and the South east. While London has been the most significant drag on the market since August – and indeed was the only region where prices eased back month-on-month in October.

"For the next few months, house price movements will continue to be in a positive direction for the reasons discussed above albeit possibly tempered by the seasonal slowdown in activity.

"Looking further ahead, some uncertainty as to how quickly and far interest rates will decline through 2025 alongside the scheduled return of higher stamp duty payments in England from next April suggest that stellar increases in house prices are not on the cards."

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