House prices unexpectedly increased last month as lower mortgage rates boosted buyer confidence despite a shortage of sellers.

Homeowners saw the value of their property increase by 0.5pc in November compared to October, according to the Halifax house price index.

It was the second monthly gain in a row after six consecutive falls before that.

It means a typical home is worth £283,615, up around £1,300 on the previous month.

On an annual basis, prices were down 1pc compared to November last year, a sharp fall from the 3.1pc decline in the year to October.

The increase comes after separate data from rival lender Nationwide also showed house prices rose in November compared to the previous month.

It indicated that property values rose 0.2pc on a monthly basis, while the annual fall was cut significantly from 3.3pc to 2pc.

Kim Kinnaird, director at 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.”

She added: “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.”

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