House prices increased by 1.3% in November, a fifth consecutive monthly increase according to the Halifax.

Property prices are up 4.8% on an annual basis and the typical property now costs £298,083, a new record.

Northern Ireland continues to record the strongest annual house price growth in the UK.

Amanda Bryden, Head of Mortgages at the Halifax, says: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence. 

“However, 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.

“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.”

In response Mark Harris – chief executive of mortgage broker SPF Private Clients – says there could be even better news next year.

“With the Bank of England Governor suggesting there may be four rate cuts next year, this will bring further cheer to hard-pressed borrowers who are struggling with affordability” explains Harris.

“With Swaps continuing to fall, the direction of travel of mortgage rates is downwards although it’s a slow, measured process. Borrowers looking for a mortgage should plan ahead as much as possible and speak to a whole-of-market broker to find the best deal available to them.”

But Karen Noye, mortgage expert at wealth management firm Quilter, is more cautious.

She comments: “Recent data from the Bank of England has already pointed to rising mortgage approvals, which reached their highest level since mid-2022. Combined with a reduction in quoted mortgage rates, this suggests that buyers are returning to the market, encouraged by the more favourable lending conditions. 

“ … But it is clear that the market remains finely balanced. Government policies aimed at supporting housebuilding and improving access for first-time buyers will be crucial if this recovery is to translate into long-term stability. As we look ahead to 2025, much will depend on whether these early signs of recovery can be sustained in the face of ongoing economic uncertainty.”