The average UK house price increased for the fifth month running in November to reach a record £298,083, according to the latest Halifax House Price Index.

Figures showed that house prices increased by 1.3% on a monthly basis during the month.

This pushed the annual rate of house price growth to 4.8%, its strongest level since November 2022.

Head of mortgages at Halifax, Amanda Bryden, said that latest figures continue to show “improving levels of demand for mortgages”, as an easing in mortgage rates helps to “boost buyer confidence”.

“Despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop,” Bryden added.

“As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”

Head of personal finance at Hargreaves Lansdown, Sarah Coles, also highlighted that the housing market could see enthusiasm when the stamp duty holiday ends.

“Buyers are already facing challenges, not least with affordability,” she added. “The sheer cost of homes is likely to be pricing people out, especially given that mortgage rates remain relatively high.

“Rates have actually risen very slightly from a month ago, and while they’re not facing alarming hikes, they’re not falling as many people will have hoped after two Bank of England rate cuts. Wages have been rising faster than inflation since property prices hit their pandemic highs, which will have eased finances slightly, but it’s still a huge ask for people to stretch onto the property ladder.

“It means that for those who are keen to buy, their deposit will make an enormous amount of difference.”

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