Halifax House Price Index November 2023

UK house prices fell 1.0% YoY in November, according to mortgage lender Halifax.
House prices in the south east of England are under the most pressure.
Average UK property now costs £283,615, up around £1300 on the previous month.a

Source: Halifax, IHS Markit

Key trends

Average UK house prices rose in November for the second month in a row, increasing by 0.5% MoM.

The annual rate of house price growth remained negative at -1.0%, but was a slower decline than expected, with prices remaining £40,000 above pre-pandemic levels.

The South East is facing the most downward pressure, with house prices having fallen by 5.7% on an annual basis to an average of £373.943.

Prices in London fell by 3.8% on the annual basis, but the capital retains the highest average house price in the country at £524,592.

Outlook

According to Halifax, the monthly uptick in prices seen in November, much like in the month before, was driven by low inventory levels as homeowners refrain from selling, rather than a rise in buyer demand.
Looking ahead, a tough macroeconomic backdrop characterised by sticky inflation, high living costs and a cooling labour market will continue to put downward pressure on prices.
The prospect of interest rates easing, or at least remaining flat may nonetheless result in a slight uptick in housing market activity, although this will largely be offset by other pressures, while the onward trajectory of interest rates remains uncertain.