The weak recovery in UK house prices took a step backwards in November, according to the Halifax.
House prices rose 0.5 per cent between October and November, but at £283,615, the average British home was worth 1 per cent less than it was in November last year, the lender's latest House Price Index found.
The monthly 0.5 per cent increase follows a 1.2 per cent rise between September and October.
Nonetheless, given all the economic headwinds, property prices have “held up better than expected”, according to Kim Kinnaird, director at Halifax Mortgages.
“The resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand,” she said.
“That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers.
“With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.
“However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained.
“Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”
Regional variations
The South East was the worst performing region in the UK, with property prices 5.7 per cent lower than in November 2022. The average home in the region now costs £373,943, a drop of £22,702.
As usual, London retained the top spot for the highest average house price in Britain, even though they have fallen by 3.8 per cent over the past year. The average house price in the capital is now £524,592.
The Halifax found that Northern Ireland was the strongest performing UK region in November. There, house prices rose by 2.3 per cent on an annual basis, with the average home now costing £189,684 – £4,294 higher than at the same time last year.
In Scotland, house prices were largely flat over the year, while they fell by 1.5 per cent in Wales, where the average house cost £215,787 in November.
Interest rates
The figures point to a degree of stability returning to the UK market, but with the full effect of more than a dozen increases to interest rates by the Bank of England still to be felt, the light at the end of tunnel for house prices remains very dim.
“While the data offers hope that stability has returned to the property market, it may be the calm before the storm if house prices weaken over the course of next year as the drag effect from the Bank of England’s 14 interest rate hikes continues to filter through to the market,” said Alice Haine, personal finance analyst at Bestinvest.
“It means sellers may be forced to price their homes more competitively to secure a sale while mortgage rates are expected to ease further though remain high in line with the ‘higher for longer’ mantra for interest rates from the Bank of England.”
All eyes now turn to next week's meeting of the rate-setting Monetary Policy Committee at the Bank of England, where interest rates are expected to stay on hold at 5.25 per cent.
“Prospective home buyers and residential buy-to-let investors seem to be continuing a cautious approach, with many putting on hold their plans, instead waiting to see what happens with mortgage rates in the longer term,” said Alan Davison, personal finance distribution director at Together.
“It will be interesting to find out what position the Bank of England takes when it makes its next interest rate decision at a meeting next week.
“Many will have their focus on the potential impact this may have on their property plans in the next 12 months.”
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
UAE currency: the story behind the money in your pockets
Playing records of the top 10 in 2017
How many games the top 10 have undertaken in the 2017 ATP season
1. Rafael Nadal 58 (49-9)
2. Andy Murray 35 (25-10)
3. Roger Federer 38 (35-3)
4. Stan Wawrinka 37 (26-11)
5. Novak Djokovic 40 (32-8)
6. Alexander Zverev 60 (46-14)
7. Marin Cilic 43 (29-14)
8. Dominic Thiem 60 (41-19)
9. Grigor Dimitrov 48 (34-14)
10. Kei Nishikori 43 (30-13)
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
More on animal trafficking
Killing of Qassem Suleimani
More from Neighbourhood Watch:
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
KILLING OF QASSEM SULEIMANI
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
COMPANY%20PROFILE
%3Cp%3EFounder%3A%20Hani%20Abu%20Ghazaleh%3Cbr%3EBased%3A%20Abu%20Dhabi%2C%20with%20an%20office%20in%20Montreal%3Cbr%3EFounded%3A%202018%3Cbr%3ESector%3A%20Virtual%20Reality%3Cbr%3EInvestment%20raised%3A%20%241.2%20million%2C%20and%20nearing%20close%20of%20%245%20million%20new%20funding%20round%3Cbr%3ENumber%20of%20employees%3A%2012%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
