UK house prices increased in the year to November, demonstrating returning signs of confidence in the property market, according to the latest data.
Average UK house prices were up 2.2 per cent in November last year, compared to a 1.3 per cent jump in the year to October.
House prices increased 1.7 per cent to £251,000 in England, driven by rising prices in the West Midlands and the North West.
The lowest annual growth rate was seen in the East of England, where prices declined 0.7 per cent, followed by London.
In the capital house prices rose 0.2 per cent, an improvement on the 0.5 per cent drop reported in October, and property remained the most expensive in the country with an average price of £475,000.
Tomer Aboody, director of property lender MT Finance, said: ‘London property prices rose slightly in the year to November, showing signs of confidence in the market which weren’t there before. However, when fewer properties are sold, prices tend to rise, so we shouldn’t get too carried away about a rally.
‘Indeed, house prices edged up across the country, apart from in the East of England, which may be to do with lower transaction levels which are down on the year for homemovers, landlords and first-time buyers alike.”
“Perhaps the leading indicator of overall market health is the performance of the London market and it would seem as though the tide is certainly starting to turn,” said Michael Stone, the founder and chief executive of Stone Real Estate.
“While London price growth remains muted, the capital has shifted from the bottom of the table and should continue to climb the ranks as the year progresses.”
PwC economist Jamie Durham added: “Assuming everything goes smoothly during the transition period, and the economic environment remains resilient, we would expect to see house price growth to strengthen this year.”