An upbeat Halifax house price index has revealed capital appreciation as high as 6.8% per year in some places.

Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by 6.8% on an annual basis in November. Properties in Northern Ireland now cost an average of £203,131. 

House prices in Wales also recorded strong growth, up 4.1%, compared to the previous year, with properties now costing an average of £225,084. 

House prices in the North West recorded the strongest growth of any region in England, up 5.9%, compared to the previous year, with properties now costing an average of £237,045.

Properties in the West Midlands also saw strong growth, increasing 5.5% on an annual basis to an average house price of £257,982.

Once again Scotland saw a more modest rise in house prices compared to the rest of the UK, property here now costs £208,957, 2.8% more than the year before. 

London retains the top spot for the highest average house price in the UK, at £545,439, up 3.5% compared to last year.

Jeremy Leaf, an estate agent and a former RICS residential chairman, says: “The market is showing its teeth, despite the extra Budget taxes in particular reducing the likelihood of early cuts in mortgage cuts and prospect of slower wage growth. Demand continues to be strong, particularly for competitively-priced homes in lower-value areas. 

“However, investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes. 

“On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage. That has also given a lift to the rest of the market by releasing second-steppers and connecting chains.“

Alice Haine of investment platform Best Invest says some of the large gains are down to first time buyers trying to beat the April 2025 deadline beyond which stamp duty rises.

She adds: “It means property prices are likely to rise in the run-up to the deadline as buyers and sellers race to beat the tax hike. 

“Beyond the start of April, the market is likely to be more muted as buyers choose to purchase cheaper homes to reduce their tax bill or negotiate more aggressively to afford their desired property. There is also the sting in the tail for second homeowners and buy-to-let landlords who are already contending with the hike in the property tax on second property purchases, which came into effect immediately [after the October Budget].”