UK house prices rise more than expected in November

News


07 Dec, 2017

UK house prices rise more than expected in November

UK house prices rose higher than anticipated in November and for a fifth consecutive month, mortgage lender Halifax said on Thursday.

House prices rose 0.5% month-on-month after a 0.3% rise in October, Halifax said, overturning the consensus in a Reuters poll of economists for a 0.2% rise.
 
Overall, house price growth on a yearly basis slipped to 3.9% in the three months to November, following a 4.5% surge in October.

“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 of Halifax Community Bank, said.

Other data suggest the housing market is cooling. Nationwide, another less known mortgage lender has reported a weaker pace of house price growth recently and the Bank of England has said mortgage approvals have slid throughout the year, but with no major fault lines as was forecast by the remain campaign pre-Brexit.

The figures come two weeks after Chancellor Philip Hammond delivered a budget that included measures to help first-time buyers and spur more housebuilding.

“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.

He added that house prices are likely to rise between 2% and 3% in 2018.

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