UK house prices rise by more than expected in Nov - Halifax

Lloyd Doyle
December 7, 2017

However, on a quarterly basis, house prices in November grew at their fastest rate since January.

The average property price in the United Kingdom rose to £226,821, or 3.2% higher than £219,741 in January this year.

Growth in the past three months compared to the same period previous year slowed to 3.9%, from the 4.5% announced a month ago, which was expected by the market.

The 0.5 per cent rise from October to November marks the fifth month in a row that house prices have gone up, reported the UK's biggest mortgage lender.

The rate of growth was in line with forecast but lower than the one recorded in October, which represented the fastest rate of growth since February, and marked the first decline in annual growth since July.

"The imbalance between supply and demand continues to support house prices, which doesn't look like changing in the near future", Russell Galley, managing director, Halifax Community Bank, said.

The Chancellor's decision to scrap Stamp Duty for first time buyers is expected have an impact on the housing market, but the Office for Budget Responsibility warned that it would push house prices up by 0.3 per cent.

Brian Murphy, head of lending for Mortgage Advice Bureau, said: "The story of 2017 has been a lack of available properties for sale in many areas, which has created upwards pressure on prices. Of course, this is a double-edged sword; great news for the homeowner who is sat on an appreciating asset, but very hard for those who want to get on or move up the property ladder".

House prices in the year to November rose 3.9 per cent, down from 4.5 per cent in October, Halifax said. "Even if successful, the chancellor's measures to boost house building in the budget will take time to have a significant effect so are unlikely to markedly influence house prices in the near term at least", Howard Archer, chief economic adviser to the EY ITEM Club consultancy, said.

Jeremy Leaf, north London estate agent and a former Rics residential chairman, said: "Once again, we are seeing a fairly familiar pattern emerging with housing market resilience and modest but steady price growth supported by a shortage of stock. This, alongside the age-old tale of weak supply, continues to subdue the market's full growth potential".

Other reports by Iphone Fresh

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