UK house price index rose in line with expectations in November

House prices in the three months to November were 0.8% higher than in the previous three months (JuneAugust). This is an improvement on the two previous months when the quarterly rate was broadly unchanged. Nonetheless, the quarterly rate of change remains well below the 3.0% increase recorded in February.

Prices in the three months to November were 6.0% higher than in the same three months a year earlier. This was the first increase for eight months and compared to 5.2% in October. Overall, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10.0% in March. November's 6.0% is the highest since August 2016 (6.9%).

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."