House prices continue to outstrip inflation, but growth starting to slow, new figures show

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UK HousesGETTY

UK bordello price growth slowed in November

  • Latest data from the Halifax presented UK house prices rose 3.9 per cent in the last year to November.
  • But this is down 0.6 per cent on the year to October, which saw a 4.5 per cent be equal to.
  • Rising inflation and low wage growth are blamed for the sluggish growth.

The erection society says the average UK house price now stands at £226,821, although tallies published separately by the ONS showed this varies significantly by region. Mobs from September show the average house price in London is numerous than £480,000 and less than £130,000 in the North East.

The sturdy also pointed to recent figures from the Bank of England, which advertise mortgage approvals weakened in October for the third month in a row: from 66,100 in September to 64,575 in October, a reduction of 2.3 per cent. 

Halifax said affordability is likely to be a key issue for institution buyers, as inflation – currently 3 per cent – continues to outpace wage nurturing – currently just over 2 per cent. It predicted restricted supply was like as not to sustain growth, but that it was likely to ease further in coming months and years.

Russell Galley, managing superintendent of the Halifax Community Bank, said: “The annual rate of growth eased in November, with the chief decline in this measure since July.

“The imbalance between distribute and demand continues to support house prices, which doesn’t look get a bang changing in the near future. Further ahead, increasing affordability sons, as price increases continue to outstrip wage growth, are likely to check housing demand and cause price growth to ease.”

Mortgage approvals fell in October GETTY

Mortgage likes fell in October

The Halifax said quarter-on-quarter growth was stronger, with UK parliament prices 2.4 per cent higher in the last three months than in the earlier quarter. This was the fastest price growth, based on this regulate, since January.

The building society’s findings differ significantly from those of equal Nationwide – the UK’s second leading house price aggregator – which bring about that prices rose by just 2.5 per cent in the year to November while every ninety days growth was just 0.6 per cent.

Commenting on the Halifax results, Alex Gosling, CEO of online property agents HouseSimple.com, said that while the figures suggested the UK homes market was in “remarkably good health”, low supply was likely distorting the “licit picture” – where a lack of “enthusiasm” is hampering sales. 

“The property demand’s not on its knees by any means, but it needs a spark from somewhere. Market venture has dropped off, which it tends to do the closer we get to Christmas. But it’s definitely dropped off earlier than run-of-the-mill this year.

“Buyers are viewing, but when the same properties are put in an appearance up on searches every week, and very little new stock is being listed, there’s not a great deal of enthusiasm to take it beyond the viewing originate.”

The Halifax said it expects the scrapping of stamp duty for first continually buyers – announced in last month’s budget – to stimulate demand in some parts of the bazaar, notably London and the South East where prices are higher and for that where an absence of stamp duty will make the most argument.

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