The annual rate of house price growth rose for the first time in eight months in November, although it may slow in the coming months, according to Halifax.
Annual house prices rose 6.0% in November – up from 5.2% in October – to £218,002. On a monthly basis house prices rose 0.2% in November.
Martin Ellis, Halifax housing economist, said: “Despite November’s pick-up, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10.0% in March.
“Heightened affordability pressures, resulting from a sustained period of house price growth in excess of earnings rises, appear to have dampened housing demand, contributing to the slowdown in house price inflation. Very low mortgage rates and an ongoing, and acute, shortage of properties available for sale should help support price levels although annual house price growth may slow over the coming months.”
The data from Halifax comes after Nationwide reported that house prices edged up slightly in November by 0.1% after flatlining in October – the first time they had failed to increase since June 2015. Nationwide said annual house price growth had slowed to 4.4%.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “November’s figures show a slight increase in monthly house price growth, but nothing like the thundering rate that we got accustomed to over the first half of the year. Despite the negative perceptions that often accompany such slowdowns, this cooling of house price inflation should be viewed positively. The fact remains that there is still a huge disparity between wage growth and property price inflation.
“Our levels of housing stock are still desperately inadequate. This chronic shortage of supply cannot continue any longer. With the promise of a Housing White Paper in the New Year what we need more than ever is real, on the ground action. For too long, the housing crisis has been a point on the political agenda. We need to see the Government and the industry actually tackle this issue by working together to build the hundreds of thousands of affordable new homes that this nation desperately desires.”
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