UK house prices extend recovery for second month, Halifax data shows

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UK house prices rose for a second month in November, according to mortgage provider Halifax, in further evidence of a resilient property market despite the stuttering broader economy.

Prices rose 0.5 per cent between October and November, following a 1.2 per cent increase in the previous month, Halifax said.

A typical UK home cost £283,615, 1 per cent down from November last year but still some £44,000 more than in January 2020, before the pandemic.

House prices have been declining since summer last year, reflecting the impact of higher interest rates and a stagnating economy. However, the latest figures released over the past two weeks suggest activity and prices stabilised in the autumn on expectations that the Bank of England’s benchmark interest rate had peaked and could be cut from the middle of next year, easing pressure on mortgage rates.

Separate data published by the BoE last week showed that two-year fixed mortgage rates with a 60 per cent loan-to-value ratio eased from 6.2 per cent in July to 5.5 per cent in October. It also showed that mortgage approvals increased more than expected to a three-month high in October.

Last week, mortgage provider Nationwide reported UK house prices rose for the third consecutive month in November.

Kim Kinnaird, director at Halifax Mortgages, said that despite the economic headwinds, property prices “have held up better than expected” in 2023.

He noted that “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”.

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”, he added.

The BoE’s Monetary Policy Committee held interest rates unchanged at a 15-year high of…