The November House Price Index from e.surv for England and Wales has revealed that the average sale price of a home in England and Wales in November marginally increased for the second month in a row, up c. £600 or 0.2% to £358,800.
Prices were at their highest since mid-year, notwithstanding the fact that average prices in November are still about 1.5% lower than a year ago though that gap is closing. E.surv said that prices are more than £20,000 (more than 5%) below the previous peak reached in late 2022.
The improving price picture takes place alongside a period of stronger activity, with HMRC property transactions data and Bank of England mortgage approvals data indicating that activity in October climbed to its highest level for two years.
E.surv expects that demand will be maintained despite the upcoming holiday season not least because of the increased Stamp Duty charges announced in the October Budget that come into play in England in April 2025. Purchases will be brought forward with the consequence we might see less activity for a few months post those changes.
“these figures reflect buyer and seller activity before the Budget and so are founded on a robust job market”
Richard Sexton, director at e.surv, said: “A second small increase in a row for November underlines the direction of travel for house prices for the holiday period. The average sale price of a home in England and Wales grew by about £600 or 0.2% to £358,800.
“Falling interest rates have and will continue to support buyer affordability over the coming months and the imminent end of the current stamp duty reliefs in April of next year will increase buyer confidence and urgency respectively over the coming months.
“But these figures reflect buyer and seller activity before the Budget and so are founded on a robust job market that reflects low levels of unemployment and good pay and income increases that have buoyed sentiment. It’s worth remembering that the Household Saving Rate in the United Kingdom increased to 10% in the second quarter of 2024 from 8.90% in the first quarter of 2024.
“Clearly some parts of the UK continue to fare better than others with London and the South East still lagging other parts of the country. While affordability here like elsewhere will improve reversal of stamp duty relief will make lending to highly leveraged buyers more difficult in the more expensive parts of the country. Yorkshire and the North West top the league of best performing areas this month and we should expect these regions to continue to outperform London and the South East.”
