The average house price in the UK went up by 10.3% in November 2022 on an annual basis, says the Office for National Statistics (ONS).
This is down from the 12.4% annual rise recorded in October 2022.
Seasonally adjusted, UK house prices rose 0.1% on a monthly basis, compared to 0.5% in October 2022.
This means that as last year drew to a close, the average house price in the UK was £295,000, which is £28,000 more than in November the year before.
In England specifically, house prices moved up 10.9% annually, giving an average price of £315,000.
In Wales, prices rose 10.7%, meaning an average house price of £220,000, in Scotland these measurements stood at 5.5% and £191,000 and Northern Ireland posted totals of 10.7% and £176,000, respectively.
SPF Private Clients chief executive Mark Harris says: “Inflation dipping for the second month in a row to 10.5 per cent will help ease some pressure on the Bank of England but another increase [to the] base rate next month is still on the cards.
‘Back in November, both Swaps and fixed-rate mortgages were rather higher than they now, as a result of the fallout of the mini-Budget. Much of that turmoil has passed through the system now, with Swaps and fixes continuing to fall.
“While the days of the sub-1% five-year fix may be long gone, it’s only a matter of time before they edge below 4% as the cost of funds falls, servicing pressures subside and lenders look to originate new business.”
And Hargreaves Lansdown senior personal finance analyst Sarah Coles comments “Sales typically take around three months to complete, but at the moment they’re taking closer to four months. It means November’s sales reflect how the market was looking in late August and September. The vast majority of this period was before all hell broke loose on the mortgage market after the mini-budget on 23 September.
“However, already buyers were starting to get cold feet. Inflation was running at 10.7%, and until the Energy Price Guarantee was announced on 8 September, we were also living with the horrible threat of another massive hike in energy prices in October. Meanwhile, we’d seen interest rates climb relentlessly for almost a year, and a combination of the two risked pushing monthly mortgage payments out of reach.
“The shocking state of the market in October and November is likely to feed through into completion figures at the start of 2023 – at which stage house price growth is likely to slow significantly, and eventually turn negative.”
Meanwhile, Fine & Country managing director Nicky Stevenson points out: Annual house price growth in November may look like a surprise on paper, but the ONS does something other indices don’t — it takes cash buyers into account.
“The prime market in particular is still buoyant, especially among cash buyers, and this may be a factor in keeping prices at this level.
“There are other reasons for optimism. Interest rates in November were still very high following the Mini Budget, but they are now declining and there is a much better choice of mortgages available.”
She adds: “Equally, it is encouraging to see inflation slowing, which will revitalise the aspirations of homemovers and first-time buyers who will be motivated by falling rates and the possibility of securing a good deal on their home.”
