House Price Growth at Its Strongest Since June 2016

UK House Prices Record Strongest Annual Growth Since June 2016

UK house prices continued to rise strongly in November, with the latest Halifax House Price Index reporting annual growth of 7.6%, the highest rate recorded since June 2016.

On a monthly basis, house prices increased by 1.2% compared with October. Over the latest three-month period, prices were also 3.8% higher than during the preceding three months, underlining the strength of market activity during the final months of 2020.

Much of the growth was attributed to strong buyer demand, low mortgage rates and the impact of the temporary Stamp Duty Holiday. The tax incentive encouraged many buyers to bring forward their property plans, while changing lifestyle priorities following the pandemic continued to influence demand for larger homes and more outdoor space.

However, the outlook for the following year remained uncertain. Halifax predicted that the pace of house price growth could slow as the market faced potential headwinds, including the end of the Stamp Duty Holiday, rising unemployment and wider economic uncertainty following Brexit.

The direction of the property market would also depend heavily on future government policy and the level of support available to both buyers and the wider economy. While demand had remained resilient throughout much of 2020, the sustainability of price growth was expected to become a key focus as the market moved into 2021.