The year-on-year increase reflected growth of 5.6% in England, 5.4% in Wales, 2.5% in Scotland and 3.3% in Northern Ireland.
House price growth is beginning to increase strongly across parts of the UK, with prices in London increasing at more than double the UK average. Annual house price increases in England were driven by rises in London (11.6%), the South East (4.5%) and the West Midlands (4.4%).
Excluding London and the South East, UK house prices increased by 3.1% in the 12 months to November 2013.
On a seasonally adjusted basis, average house prices increased by 0.5% between October and November 2013.
In November 2013, prices paid by first-time buyers were 6.4% higher on average than in November 2012. For owner-occupiers (existing owners), prices increased by 5.1% for the same period.
Andy Knee, Chief Executive of LMS, comments:
“2013 has seen a ‘residential renaissance’ in the fortunes of the UK housing market, with average house prices surging forward by 5.4% in the past twelve months. However, the annual increase is down slightly from October’s 5.5% suggesting November saw a slight slowdown in the lead up to festive season. The market has clearly been propelled by the prosperous market in the capital, but it is evident that appetite for property is growing throughout the rest of the country – with notable price rises occurring in the South East and the West Midlands.
“The coming twelve months will be the true test for the market, with Help to Buy picking up the mantle from the axed Funding for Lending Scheme (FLS) and the introduction of more stringent lending measures which could limit borrowing levels. It is also vital that the vast chasm between the demand for property and the supply of new homes is satisfied to maintain growth and ensure the market is restored back to full health. Steps have already been taken and plans outlined, which is indeed an encouraging sign. But rhetoric must be realised, if the UK property market is to continue to prosper this year.”
Adrian Anderson, director of mortgage broker Anderson Harris, says:
"The latest November ONS data shows no real surprise with London up a whopping 11.6%, double the UK average growth rate and it continues to be the real driver of house prices. This is down to its international status, with overseas money coming into London, attracted by a relatively weak sterling but also because London is considered a safe haven with a steady political system at its core. London is not just about oligarchs parking several million in cash there, it is also about families wanting their offspring to attend schools in London. The Banking sector has also picked up and is providing a fillip to the market.
"The regions are becoming more buoyant too. In the south east we are seeing the flow of those buyers, particularly UK-based buyers, being ousted from the London property market and having to look further out, thus providing a halo effect on prices.
"House prices have increased more for first time buyers than for existing home owners and this has been driven by more availability of higher loan to value mortgages for first time buyers. Help to Buy has helped and should continue to. As house prices increase then lenders are matching this with higher loan to values. All this might tighten up a bit post 26th April with the Mortgage Market Review, but that will take a while to filter through to the mortgage market and we might see its effects more towards the end of 2014. And with the latest news on inflation falling in November, this means there is less pressure on a potential interest rate rise."
