The pace of UK house price growth is showing signs of slowing, according to the latest figures from Halifax. Prices rose 3.9pc in the three months to November, compared with the same period last year, but the pace of growth has slowed since October, when the annual increase was 4.5pc, according to the lender.
On another measure, property prices rose 2.4pc in the three months to November, compared with previous three-month period, representing the fastest rise since January, with Halifax said.
Between October and November, house prices increased for the fifth consecutive month, by 0.5pc, to reach an average of £226,821, which is 3.2pc higher than in January.
Halifax said that, despite the easing annual growth, the imbalance between supply and demand continues to support house prices. Housing supply in the UK fell in the 20 consecutive months to October, while new buyer enquiries weakened in September and October, marking the seventh consecutive month that the measure has fallen, according to the Royal Institution of Chartered Surveyors’ monthly report.
Russell Galley, managing director at Halifax Community Bank said that this trend was unlikely to change in the near future.
"Further ahead, increasing affordability issues, as price increases continue to outstrip wage growth, are likely to curb housing demand and cause price growth to ease," he said.
New measures set out by the Government in the Budget to help first-time buyers could further boost demand, Mr. Galley noted.
"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,” he said.
The value of the UK's private housing stock before deducting for mortgage outstanding balances has grown from £4.1tn in 2007 to an estimated £6tn in 2017, according to Halifax research. The £1.9tn increase over the past decade is equivalent to almost £70,000 per household in the owner-occupied and private rented sectors, the lender said.