Price of average house in UK reaches record high of £298k

The UK housing market has hit a new milestone, with the average house price reaching a record £298,083, according to Halifax. November’s figures showed the fastest monthly rise in a year, reflecting stronger employment, falling interest rates, and renewed buyer confidence. Regional trends highlight London as the priciest area, while Northern Ireland and the North West of England saw the strongest growth. However, affordability remains a challenge, with economic uncertainty and upcoming stamp duty changes driving urgency among buyers.

UK house prices rose at their fastest monthly rate last year in November, hitting a record average of £298,083, according to the Halifax bank.

The mortgage lender reported a 1.3% rise compared with October, marking the fifth consecutive monthly increase. Annual growth also accelerated to 4.8%, the highest in two years, reflecting increased demand and a weaker market in the previous year.

"Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boosts buyer confidence," said Amanda Bryden, Halifax's head of mortgages.

Stronger employment and falling interest rates are expected to support further price increases into next year, but affordability remains a challenge. "Buyer confidence may be tested against a changeable economic backdrop," Bryden added.

Stamp duty changes appear to be driving urgency among buyers. Jonathan Hopper, chief executive of Garrington Property Finders, told the BBC that "hesitation has turned to hurry" as first-time buyers rush to complete purchases before the tax thresholds change in March.

Regional trends

London remains the most expensive region, with an average house price of £545,439. Northern Ireland saw the strongest annual growth, with prices up 5.9% to £203,131.

In England, the North West led growth, with a 5.9% increase bringing the average price to £237,045. Scotland saw a modest 2.8% rise, with homes averaging £208,957.

The Halifax's data, based on its mortgage lending, excludes cash buyers and buy-to-let purchases. Cash transactions, which account for about a third of housing sales, are not included in the figures.

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