UK house prices rise amid property shortage - Halifax

UK house prices rose for the second month in a row in November, boosted by a shortage of properties, according to figures released by Halifax on Thursday.

House prices rose 0.5% on the month following a 1.2% jump in October and after six consecutive declines, leaving the price of a home at £283,615.

On a yearly basis, prices were down 1% in November, following a 3.1% drop in October.

Kim Kinnaird, director of Halifax Mortgages, said: "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.

"However, 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."

Imogen Pattison, assistant economist at Capital Economics, said: "The second consecutive monthly rise in the Halifax house price index in November mirrored the increase in the Nationwide index, confirming that house prices have not only stabilised, but are rising.

"While a shallow recession and a rise in unemployment next year may cause a further modest fall in house prices, with the peak in mortgage rates behind us, prices may well have already bottomed out."