The average UK house price increased for a second month in a row and climbed by 0.5% in November, the latest Halifax House Price Index has shown.

This latest increase, worth £1,394 in cash terms, has taken the average UK hose price to £283,615.

According to Halifax’s latest data and despite the wider economic headwinds, property prices have held up “better than expected”, the bank said, having fallen by -1.0% on an annual basis, and remaining around £40,000 above pre-pandemic levels.

The latest annual growth, at -1.0%, is a significant improvement on the figure for the year to October, when annual house price growth had slumped to -3.1%.

Director at Halifax Mortgages, Kim Kinnaird, suggested the resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand.

Kinnaird added: “That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers. With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.

“However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”

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