Property prices in Northern Ireland are rising faster than anywhere else in the UK, according to the latest Halifax house price survey.
Homes in the North were costing 6.8 per cent more in November than at the same time last year, according to the monthly report. Properties in Northern Ireland now cost an average of £203,131 (€245,000).
It comes as UK house prices overall jumped by the most in over two years after an end to budget uncertainty, an interest-rate cut and low unemployment boosted buyer demand, according to the mortgage lender.
Halifax said the average home price across the UK rose 1.3 per cent in November to a new high of £298,083, the fifth consecutive monthly gain and the biggest increase since June 2022. Prices were 4.8 per cent higher than a year earlier.
Bank of England data also showed mortgage approvals hitting their highest in over two years in October while figures from the British revenue and customs showed transactions in the residential market were up 9.5 per cent in October over September on a seasonally-adjusted basis, and by 21 per cent year-on-year.
The data suggest that homebuyers shrugged off concerns over the British Labour government’s first budget, buoyed by a tight jobs market and the Bank of England cutting interest rates for only the second time this year.
“As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand,” said Amanda Bryden, head of mortgages at Halifax.
“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago,” she said.
Chancellor Rachel Reeves’ budget spared households from most of the pain from her £40 billion of tax rises, which were mainly shouldered by businesses. Homebuyers also received a psychological boost after the Bank of England pressed ahead with another interest-rate cut last month.
House prices in the northwest recorded the strongest growth of any region in England, with values up by 5.9 per cent. Scotland saw a more modest rise in house prices compared with elsewhere in the UK, with a 2.8 per cent annual increase. Prices in London were 3.5 per cent ahead of last year.
Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “With interest rates now easing, many buyers will have increased confidence to approach the housing market.
“We are, however, likely to see a spike in homes for sale and those looking to move home, especially across England and Northern Ireland trying to complete before the rises to stamp duty commence from April 2025.”
Temporary stamp duty thresholds are set to end from April, with the “nil rate” band for first-time buyers in Northern Ireland decreasing from £425,000 to £300,000.
The property market may face some headwinds from mortgage rates creeping higher since the expansionary budget after investors bet on gradual cuts by the Bank of England going forward.
Moneyfacts data suggests the average two-year fixed mortgage rate in the UK climbed to 5.5 per cent on Thursday, up from 5.39 per cent before the October 30th budget. It is still lower than in the summer when it was almost 6 per cent. – Bloomberg / PA
