The average price of a house in the UK has hit a record high after a fifth successive month of increases in the value of properties, Britain’s biggest mortgage lender has said.

Halifax’s monthly house price index found that the cost of an average home was £298,083 in November, up almost £5,000 on the previous record set in October.

Before the latest rises, the record high was set in June 2022, at £293,507.

House prices increased by 1.3% in November, the biggest increase this year and the fifth consecutive monthly rise.

On an annual basis property prices were up 4.8%, the highest rate of increase since November 2022.

Amanda Bryden, the head of mortgages at Halifax, said: “Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence.”

Bryden warned that despite the mini-boom, many potential buyers still faced significant affordability challenges. “Buyer confidence may be tested against a changeable economic backdrop,” she said.

Nevertheless, Bryden said positive employment figures and expectations of a further decrease in interest rates, which should flow through to better mortgage deals, were expected to continue to keep demand high in the property sector.

“This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago,” she said.

Northern Ireland continued to experience the strongest property price growth in the UK, rising 6.8% on an annual basis in November. The average home in Northern Ireland now costs £203,131.

In England, the north-west recorded the strongest growth, at 5.9%, with properties now £237,045 on average.

London retained the top spot for the highest average house price in the UK, at £545,439, up 3.5% compared with last year.

“Those areas where there is limited stock to tempt buyers are seeing prices hold firm and indeed rising in some cases,” said Amy Reynolds, the head of sales at the estate agency Antony Roberts.

“Homes that are well-priced and well-presented continue to sell relatively quickly. Buyers may pause to assess the financial implications of a purchase but high-demand areas are likely to retain interest into the new year and beyond.”

Separate figures released by Nationwide this week showed house prices in the UK grew at the fastest rate in almost two years in November.

The figures from Halifax and Nationwide suggest house hunters have shrugged off the changes to property buying in the chancellor Rachel Reeves’s debut budget, which was announced at the end of October.

In England and Northern Ireland, Reeves increased stamp duty on buy-to-let properties and second homes from 3% to 5% from next April.

She also scrapped the temporary increase on purchase price for nil rate of stamp duty, the sale figure before consumers have to start paying the tax.

“Market activity typically slows at this time of year as buyers rush to finalise moves before Christmas or pause their plans to focus on the festive season,” said Nicky Stevenson, the managing director of the estate agent group Fine & Country. “However, this rise in house prices – both monthly and year on year – suggests a shift, with many buyers forging ahead. This surge may be driven by a desire to complete transactions ahead of the tax increases announced by the chancellor.”

On Wednesday, Andrew Bailey, the governor of the Bank of England, said there could be four interest rate cuts next year, if the rate of inflation continued on a downward path.

Mark Harris, the chief executive of the mortgage broker SPF Private Clients, said the cuts would “bring further cheer to hard-pressed borrowers” who were “struggling with affordability”.

However, the housebuilder Berkeley cautioned on the near-term demand for new homes after reporting an almost 8% fall in profits on Friday.

Berkeley said affordability concerns continue to weigh on the property sector, as the company reported a 7.7% decline in profits to £275m for the half-year to the end of October.

“While we have seen a slight uptick in recent weeks, a meaningful recovery will require a sustained improvement in consumer confidence and stability in the wider macroeconomic environment,” said Rob Perrins, the chief executive at Berkeley.

The company said there had been a “slight improvement” in sales in recent weeks, and reiterated its existing pre-tax profit guidance of £525m for the year to the end of April.