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UK house price growth slowing, says Halifax | |
(35 minutes later) | |
The growth in UK house prices is continuing to slow, according to the country's largest lender, the Halifax. | |
It said average prices rose by 3.9% in the year to the end of November, down from 4.5% in October. | |
And it warned that growth is likely to ease further in the longer term, as wages fail to keep pace with inflation. | |
Some commentators also said that the Halifax figures were out of kilter with other indicators, which suggest prices rises are even more modest. | |
Last week, rival lender Nationwide said prices had risen by just 2.5% over the past year, which is lower than the rate of general inflation. | |
According to the Consumer Prices Index (CPI), the cost of living rose by 3% in the year to October. | |
'Imbalance' | 'Imbalance' |
The average house or flat in the UK is now selling for £226,821, the Halifax said. | |
"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. | 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. | 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. | 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. | 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. | 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. | "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. | 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. | "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? |