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| House prices still growing faster than inflation, says Halifax | House prices still growing faster than inflation, says Halifax |
| (35 minutes later) | |
| House prices across the UK are still growing faster than the general rate of inflation, according to the country's largest lender. | House prices across the UK are still growing faster than the general rate of inflation, according to the country's largest lender. |
| The Halifax said that prices rose by 3.9% in the year to the end of November, down from 4.5% in October. | The Halifax said that prices rose by 3.9% in the year to the end of November, down from 4.5% in October. |
| Despite the slowdown, the pace remains above Consumer Prices Index (CPI) inflation, which is currently 3%. | Despite the slowdown, the pace remains above Consumer Prices Index (CPI) inflation, which is currently 3%. |
| However, rival lender Nationwide said last week prices had risen by just 2.5% over the past year. | |
| 'Imbalance' | |
| According to the Halifax, the average house or flat in the UK is now selling for £226,821. | According to the Halifax, the average house or flat in the UK is now selling for £226,821. |
| "The imbalance between supply and demand continues to support house prices, which doesn't look like changing in the near future," said Russell Galley, the managing director of Halifax Community Bank. | "The imbalance between supply and demand continues to support house prices, which doesn't look like changing in the near future," said Russell Galley, the managing director of Halifax Community Bank. |
| However, he added that house price growth was likely to slow in the long term. | |
| "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." | "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." |
| The Halifax said that the changes to Stamp Duty for first-time buyers announced in last month's Budget would help to stimulate demand in London and the South East. | |
| For properties costing up to £500,000, first-time buyers will now pay no stamp duty on the first £300,000. | |
| However, other data points to a continuing slowdown in the market. | |
| In October, the number of home buyers being granted mortgages fell to its lowest for over a year, according to figures from the Bank of England. | |
| "Housing market activity is currently muted and faltering," said Howard Archer, chief economic adviser to the EY Item Club. | |
| Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the Halifax figures were at odds with other indicators, such as surveys from Nationwide and Rightmove. | |
| "Halifax's suggestion that house prices are surging again conflicts with virtually every other indicator we track," he said. | |
| Where can I afford to live? | Where can I afford to live? |