United Kingdom house prices rise 3.9%

On the rise Prices have been growing gradually most months this year

On the rise Prices have been growing gradually most months this year

Halifax data showed United Kingdom home prices rose 0.5% in November and 2.4% in the three months to November.

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

The annual rate of growth of house prices in Britain recorded its first drop in four months but remained firmly above the rate of inflation, a survey from the UK's largest lender showed.

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

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.

That outlook comes despite a slowdown in mortgage approvals in October and the likelihood of further BOE and mortgage interest rate rises in 2018.

Economist Sam Tombs at Pantheon Macroeconomics said Halifax's suggestion that house prices are surging again conflicts with virtually every other housing market indicator.

The latest data from the Royal Institution of Chartered Surveyors (Rics) showed a sharp decline in the supply of homes for sale and a weakening of new buyer enquiries.

"We do expect the Government's first-time buyer stamp duty changes to provide some stimulus to demand, particularly in London and the South East where the impact is greatest", said Mr Galley.

"As the Halifax report this morning indicates that the average home price of £226,821 now falls squarely within the stamp duty exception range for first-time buyers, hopefully the recent move by the chancellor will translate into real savings for those getting onto the ladder", said Murphy.

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

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