House price rise accelerates in November but 'growth may slow over the coming months'
Halifax house price index for November shows increase in annual growth rate to 6%.
House price growth accelerated in November, said the monthly index from Halifax building society, but is set to slow over the coming year as pressures build in the housing market.
Halifax said the average UK house price rose annually by 6% to £218,002, up from a 5.2% year-on-year growth rate in October. On a monthly basis, house prices grew 0.2% in November.
"Despite November's pick up, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10% in March," said Martin Ellis, housing economist at Halifax.
"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."
Interest rates on mortgages are still at historic lows, helping to support demand in the housing market. The Bank of England slashed its base rate in half to 0.25%, an all-time-low, in the wake of June's vote for Brexit to support the economy through any turbulence.
"While the property market has proven resilient over recent months, underpinned by a continued demand for homes of all types, growth in the coming months is likely to be limited by a lack of buyer affordability and uncertainty around the outcome of Brexit negotiations," said Ian Thomas, co-founder and director of online mortgage lender LendInvest.
A serious supply shortage in some areas of England, particularly London and the South East, has driven up house prices sharply in recent years. Demand for new housing is estimated to be between 200,000 and 300,000 new units a year. But for the year to the end of September there were only 147,880 starts and 141,690 completions, show government figures, though both were up annually by 4%.
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