Stock shortage or increased demand? House prices rise again
House prices increased for the second consecutive month in November, according to Halifax.
The lender’s latest House Price Index recorded monthly growth of 0.5% but said average values are still down annually by 1% albeit at a better rate than the previous 3.1% decline.
The typical UK home now costs £283,615, around £1,300 more than last month
(news report from Estate Agent Today)
Kim Kinnaird, director at Halifax Mortgages, said: “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.
“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.
Nathan Emerson, chief executive of agency trade body Propertymark, added: “There is little hiding away from the fact 2023 has been a complex and challenging year for the housing market. The market has grappled with both high inflation and elevated interest rates and this unfavourable combination has brought a far more cautious approach from both buyers and sellers alike.
“Propertymark remains optimistic 2024 will bring a more positive outlook, with inflation hopefully continuing to drop and household earnings gathering greater momentum. However, we must remain vigilant, as recovery sometimes comes with unexpected challenges along the way.