The latest Halifax house price index of the year shows that prices have continued to climb, up 0.2% on last month with an annual rate of increase of 6%. This is the first annual increase in eight months.
House prices in the three months to November were 0.8% higher than in the previous three months (June – August).
According to Halifax confidence in the UK housing market has fallen to its lowest point in three years but the majority still expect prices to rise.
Home sales have steadied in recent months but are lower than a year ago and mortgage approvals have also stabilised, although supply remains historically low.
Yet more signs of life shooting from the frosty ground of the UK property market with the first annual increase in eight months providing UK homeowners with an early Christmas gift.
Many in the industry have been quick to put the boot in over the last few months where the UK property market is concerned, hanging gloomy predictions on a dwindling level of demand in the market.
It would seem this simply isn’t the case. The driving factor behind inflating house prices is an imbalance between supply and demand and, with house prices spiking this late in the year, it would seem there is certainly a sustained level of buyer demand present in the current market.Russell Quirk