- House prices accelerate in Northern England but fall in London
House prices rose by £10,000 in the 12 months to November, according to official figures.
The average property price rose 3.3 per cent in the year to November 2024, according to the Office for National Statistics, despite a fall of 0.4 per cent in the final month of that period.
The average home was estimated to be worth £290,000 as of November, up from £280,000 in November 2023.
Jonathan Hopper, chief executive of buying agency Garrington Property Finders said: ‘The property market has made a brisk start to the New Year, with estate agents reporting a surge of interest from both buyers and sellers.
‘But November’s fall in average prices serves as a chastening reminder to sellers of just how much competition they face in securing a buyer.
‘Even though the annual figures still show a reassuringly sedate upward trajectory, the monthly data reveals just how keen pricing has become.’
Upward trend: House prices are up 3.3% according to the latest figures from the ONS, despite prices falling in the month of November by 0.4%
Where did house prices rise most?
The ONS figures run on a delay compared to other house price indexes, but are considered more accurate because they are based on completed sales.
House prices rose the most in Northern Ireland, according to the ONS, with the average home up 6.2 per cent year-on-year and now worth £191,000.
In Scotland prices are up 4.7 per cent, while both Wales and England have seen prices rise by 3 per cent on average.
Across the English regions, annual house price growth was highest in the North East, where prices increased by 5.9 per cent in the 12 months to November 2024.
London was the English region with the lowest annual growth, where prices fell by 0.1 per cent in the 12 months to November 2024 after a whopping 1 per cent monthly fall.
In fact, London was the only English region to see house prices fall in the 12 months to November 2024.
‘Prices fell by a full 1 per cent in London during November, which may be a whiplash effect from the tax rises announced by the Chancellor in her Budget at the end of October,’ added Hopper.
‘The capital is once again seeing prices fall on an annual basis too, as price-sensitive buyers negotiate hard on price or look elsewhere.
Jonathan Hopper, chief executive of buying agency Garrington Property Finders
‘Rregions where value is perceived as strongest are seeing prices rise rapidly.’
Prices in North East England jumped by 1.1 per cent in November alone, and have surged by 5.9 per cent on an annual basis.
In the North West and in Yorkshire and the Humber, annual price inflation was 5.7 per cent.
What next for house prices?
Looking ahead most forecasts point towards a similar picture playing out for house prices over the coming 12 months.
Higher mortgage rates will continue to weigh heavily on what buyers can afford.
Karen Noye, mortgage expert at Quilter, said: ‘Despite the annual gains, the monthly decline may signal early signs of buyer hesitation amid broader economic uncertainty.
‘This uncertainty will be compounded by the recent turmoil in the bond markets putting upward pressure on mortgage rates. This dynamic is likely tempering demand, particularly among first-time buyers already stretched by rising living costs and tighter lending criteria.’
Agents are also reporting high levels of stock, which could also help to keep a lid on prices.
More choice on the market is great for buyers looking to haggle and bag a discount but for sellers it may mean there are more homes to compete with.
