Halifax House Price Index November 2022

UK house prices increased 4.7% YoY in November according to mortgage lender Halifax.
On a monthly basis, prices fell by 2.3% in November (vs -0.4% in October).
The average UK property now costs £285,579 (down from £292,406 in October)

House prices coming down from peak

Source: Halifax, IHS Markit

Key trends

The annual rate of house price growth eased to 4.7%, from 8.2% in October, indicating that the housing market has entered a slower period.
The monthly fall in house prices of 2.3% is the sharpest since October 2008, and the third consecutive fall, taking the average property price to £285,579.
All regions saw annual house price growth slow in November except for the North East, which saw its rate of annual growth increase slightly to 10.5% (up from 10.4%).
Wales (7.9%) and the South West (8.4%), both key hotspots of house price inflation during the pandemic, saw the sharpest slowdown in growth from 11.5% and 10.7% respectively.
London continues to lag other UK regions, and the rate of annual house price inflation in the capital rose again by 5.2% in November, down from 6.6% in October. With a typical house price of £549,160, however, the average property price is London continues to be significantly higher than those in other parts of the country.

Outlook

November saw the largest monthly drop in average house prices since October 2008, reflecting the worst of recent market volatility.
Many potential home moves have been put on hold as rising living costs and the prospect of mortgage rate increases continue to erode buyer confidence.
The limited supply of properties nonetheless continues to put upward pressure on house prices, which remain £12,000 higher than November 2021.
The outlook for house prices will depend heavily on the trajectory of mortgage rates and household finances against a harsh economic backdrop.
While current joblessness is at a historic low, an increase in unemployment in the event of a recession will also be a key determinant of house price performance over 2023.