Average UK house price is £25,000 higher in November than a year earlier


House prices jumped 10.0% a year in November 2021, according to official figures, after growing 9.8% in October.

Experts have warned that with soaring living costs such as energy bills, it is imperative that buyers do not get too comfortable when looking for their ‘dream home’.

Some have also suggested that the rising cost of living could limit people’s confidence in buying property.

The average UK house price in November was £271,000, up £25,000 from a year earlier, the Office for National Statistics (ONS) said.

In Scotland, the average house price hit a record high of £183,000 in November. Property values ​​rose 11.4% for the year, following growth of 11.0% in October.

Average house prices rose over the year in England to £288,000 (9.8% annual growth), Wales to £200,000 (12.1%) and Northern Ireland to 159 £000 (10.7%).

(PA graphics)

In England, the South West saw the strongest annual house price growth, with average prices rising 12.9% in the year to November.

The weakest annual house price growth was seen in London, where average prices increased by 5.1% per year.

The figures were released on the same day as separate figures from the ONS showed inflation hit its highest level in nearly 30 years in December, further weighing on the cost of living for households.

The ONS said consumer price index (CPI) inflation rose from 5.1% in November to 5.4% in December – the highest level since March 1992.

Jamie Durham, economist at PwC UK, said: “In 2022, the most significant risk to the (housing market) outlook is continued pressure on the cost of living…

“This can impact consumer confidence and limit willingness to make important financial decisions like buying a home.”

Emma Cox, Sales Director at Shawbrook Bank, said: “The harsh reality is that this long period of groundbreaking property prices will pose challenges for the market as we move forward into 2022.

“With inflation hitting 5% this year and the cost of living rising, it’s imperative that buyers don’t get too comfortable chasing their dream home.

“A mortgage is probably the largest amount of debt an individual takes on.”

Miles Robinson, Head of Mortgages at online mortgage broker Trussle, said: “Rising interest rates have already had a big impact on mortgage lending, with mortgage rates below 1% having all but disappeared from the market. overnight market.”

He added: “Rising energy costs are expected to affect mortgage affordability.

“Not only could this prohibit first-time buyers with smaller deposits, but it could also secure more competitive mortgage deals.”

Phillip Stevens, director of estate agent Antony Roberts, said: “Rising interest rates do not appear to have shaken buyer confidence so far or their ability to purchase property, but with inflation at a 30-year high, that could change.”

Guy Gittins, Managing Director of Chestertons, said: ‘Due to demand exceeding supply, we have seen properties snap up much faster than in previous years.

(PA graphics)
(PA graphics)

Jeremy Leaf, a North London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors, said: “Rising interest rates, inflation, tight affordability and in particular insufficient inventory are likely to control house prices better this year.”

Lucy Pendleton, property expert at estate agent James Pendleton, said: ‘The way house price growth has strengthened on a yearly basis underscores the fact that this is a rally very long tail.

“However, the headwinds that will undoubtedly slow the market later this year are already staring us in the face.”

Nicky Stevenson, managing director of estate agent group Fine & Country, said: “Looking ahead, these market fundamentals are unlikely to change dramatically in the months ahead, and it remains a boiling sellers’ market.

“While interest rates are expected to rise, the effect of this may only become clear over a period of years.

“Unless we see a significant number of new listings ahead of the spring, double-digit house price growth is likely to remain persistent for some time.”

Nitesh Patel, Strategic Economist at the Yorkshire Building Society, said: “With buyers still reassessing their housing needs and first-time buyers increasingly prominent in the market, we expect demand to continue to outpace the supply, with fewer existing stock homes coming up for sale and new builds still weak.

Iain McKenzie, managing director of the Guild of Property Professionals, said: “Estate agent portfolios are at historic lows, with many branches having a dozen or fewer properties for sale, and there are no signs that this situation is changing.”

Mark Harris, managing director of mortgage brokerage SPF Private Clients, said: “Low mortgage rates have been one of the contributing factors to the property boom and although some lenders are adjusting mortgage rates upwards due to rising money market rates, prices remain competitive. .”

Myron Jobson, personal finance activist, interactive investor, said: “With ‘mom and dad’s bank’ also facing its own cost-of-living challenges, many aspiring homeowners will find it difficult to reach their goal. .”