As mortgage rates decline, house values climb once again

For the second consecutive month, Halifax reported that prices increased by 0.5% in November.

Recent data on mortgage approvals, it added, indicated "a slight uptick" in buyer activity as house loan costs decline.

Prices are still lower than they were a year ago, though, and Halifax predicted that market pressure would last till 2024.

According to the lender, typical house prices are 1% lower than they were in November of last year, at £283,615.

Halifax's results confirm those of competitor lender Nationwide, which stated last week that although rates had increased in November, they were still lower than a year ago.

The recent declines in mortgage interest rates "may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases," according to an increasing number of mortgage approvals.

Over the past two years, the Bank of England has gradually raised interest rates in an effort to reduce inflation—the pace at which consumer prices grow.

With the Bank's main rate being at a 15-year high of 5.25%, purchasing a property has become more costly due to rising mortgage rates.

Mortgage rates have, however, decreased recently due to concerns that interest rates have peaked, despite the Bank of England's repeated warnings not to expect rate cuts anytime soon.

(Sources: investing.com, reuters.com)