House prices saw the fastest price growth since January

Marco Green
December 7, 2017

House prices rose by 0.5% between October and November, following a 0.3% increase in October, marking the fifth consecutive monthly rise.

Property prices from September to November are 3.9 per cent higher than they were in the same three months past year.

United Kingdom house prices increased more than expected in November, data published by the mortgage lender Halifax and IHS Markit showed Thursday.

The average house price in the United Kingdom is now £226,821, according to Halifax.

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.

Russell Galley, managing director at Halifax Community Bank said that this trend was unlikely to change in the near future. This would suggest the last call for property sales in 2017 has been made, but with sales reaching their highest level this year, there are still plenty looking to complete this side of Christmas which will keep things ticking over.

That outlook comes despite a slowdown in mortgage approvals in October and the likelihood of further BOE and mortgage interest rate rises in 2018. Following a couple of months in which new instructions had held broadly stable, supply has now fallen in 20 consecutive months to October.

And Zoopla has revealed homeowners were selling their homes at nearly 4 per cent less than the asking price in September.

However, Galley said Philip Hammond's decision to scrap stamp duty for first time buyers up to £300,000 could boost the market.

Alex Gosling, chief executive of online estate agents HouseSimple.com, said market activity had dropped off earlier than normal this year.

"But if homeowners further up the chain aren't selling, there won't be enough affordable properties coming onto the market".

The latest barometer of United Kingdom residential real estate prices suggests end of the year lethargy is creeping into the market.

Other reports by Click Lancashire

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