UK house prices jump 1.3% to record high

UK HOUSE prices soared to a new record high in November after an end to Budget uncertainty, an interest-rate cut and low unemployment boosted buyer demand, according to one of the country’s biggest mortgage lenders.

Halifax said the average home price rose 1.3 per cent to £298,083 (S$509,257), the fifth consecutive monthly gain. Prices were 4.8 per cent higher than a year earlier.

The figures chime with rival lender Nationwide Building Society, whose own measure showed prices rose 1.2 per cent last month, the sharpest increase since early 2022. Bank of England data also showed mortgage approvals hitting their highest in over two years in October.

“As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand,” said Amanda Bryden, head of mortgages at Halifax.

“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago,” she said.

Chancellor Rachel Reeves’ Budget spared households from most of the pain from her £40 billion of tax rises, which were mainly shouldered by businesses. Homebuyers also received a psychological boost after the central bank last month pressed ahead with only its second interest-rate cut since the pandemic.