UK house prices hit a record in November, with values over the past three months rising at their fastest pace for 15 years, according to mortgage lender Halifax. The average price of a home stood at £272,992 after gaining 3.4% in the quarter through November, the fastest pace since late 2006, the mortgage lender said in a report published Tuesday. Prices rose 1% in November alone – a fifth monthly increase – and were up 8.2% from a year earlier. The average property has gained more than £20,000 over the past year. A typical home in the UK. has gained more than 8% over the past year. Halifax attributed the increase to shortage of available properties, a strong labour market and keen competition keeping mortgage rates close to historic lows. But it warned that momentum is likely to be slow, given stretched affordability and the prospect of Bank of England interest-rate increases. Commentators do not expect the current level of house price growth to be sustained next year given that house price to income ratios are already historically high, and household budgets are only likely to come under greater pressure in the coming month. The emergence of the Omicron variant of Covid-19 could also dent economic confidence, though it remains far too early to speculate on any long-term impact, given insufficient data at this stage, not to mention the resilience the housing market has already shown in challenging circumstances. Wales remained the strongest performing region of the UK, where property prices broke through the £200,000 mark after a near 15% gain over the past year. Values in London rose just 1.1%, reflecting pandemic-driven demand for more spacious homes away from city centres.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of December 2021 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.