Despite the boost, property prices are still lower than a year ago, according to Halifax.
The lender said that the average house price is now £283,615, one per cent lower than last November, but 0.5 per cent higher than October 2023.
This marks the second monthly increase on the run, with property prices now around £40,000 more than pre-pandemic.
Kim Kinnaird, director of Halifax Mortgages, said: “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.
“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.
“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.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “It has been a good month for a tough market, but we can’t get carried away just yet.
“House prices are robust, and the annual fall is now a modest 1%. In the next couple of months, as we compare to lower prices a year earlier, we could climb back into positive territory on an annual basis, especially if we see more monthly rises.
“Unfortunately, sellers face a problem that’s all too familiar now. On paper things are looking good, but they actually have to find a buyer first, and they’re still pretty thin on the ground.”
