House prices still rising despite economic headwinds says leading lender

Halifax data shows average house price rose by +0.5% in November after a +1.2% rise in October, so a typical home is now worth £1,300 more than last month.


The housing market doom-mongers have been proved wrong after Halifax’s latest data shows house prices have risen for the second month in a row – making a typical home £1,300 more expensive than last month.

Releasing its final House Price Index for the year Halifax also says that on an annual basis prices dropped by just -1% compared to -3.1% last month with SE England seeing the greatest downward pressure. Over the year prices in the region dropped -5.7% to £373,943 – wiping some £22,702 off an average home.


But in Northern Ireland house prices increased +2.3% and now cost on average £189,684 – almost £5,000 more than this time last year (£4,294).

And house prices in Scotland have held up too following flatline growth, with the average property in the country now costing £203,116.

Meanwhile Wales also recorded one of the lowest annual falls (-1.5%) with homes selling for an average £215,787 in November.

And in Londonl, although prices have now fallen -3.8% on an annual basis it had the highest average house price in the UK at over half a million pounds (£524,592).

Graph showing house price data from Halifax over the last 12 months.


Kim Kinnaird, Director, Halifax Mortgages, says: “Over the last year, despite the wider economic headwinds, property prices have held up better than expected, falling by a relatively modest -1.0% on an annual basis, and still some £40,000 above pre-pandemic levels.

Kim Kinnaird, Halifax

“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.”


But she adds: “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.”

Nathan Emerson, Propertymark

Nathan Emerson, Chief Executive of agent trade body Propertymark, says: “When the housing market is on the receiving end of high inflation and interest rates, it is inevitable that the market becomes more fragmented than usual with some geographical areas performing better than others.

“While it has been an extremely challenging year overall, it’s not all doom and gloom and some parts of UK have maintained stability with house prices, whilst some homeowners have actually seen their homes increase in value.”

Last year The Neg reported how some experts were predicting house price falls of 25% – and some even 35% – during the course of 2023.

Chart showing historical house price data from Halifax over the last 12 months.

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