November sees annual house price growth ease to 3.9%

November sees annual house price growth ease to 3.9%

According to the latest data and analysis from Halifax, house prices in the last three months (September-November) were 2.4% higher than in the previous quarter (June-August). This is the fastest price growth, on this measure, since January.

Prices in the three months to November were 3.9% higher than in the same three months a year earlier although the annual change in November was lower than in October (4.5%).

House prices rose by 0.5% between October and November, following a 0.3% increase in October marking the fifth consecutive monthly rise. The average price of £226,821 is 3.2% higher than in January (£219,741).

Russell Galley, Managing Director, Halifax Community Bank, said: “Whilst the annual rate of growth eased in November, with the first decline in this measure since July, when looking at quarterly change prices in the three months to November were marginally higher than in the preceding three months; the fourth consecutive quarterly increase..

The imbalance between supply and demand continues to support house prices, which doesn’t look like changing 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. 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.”


Russell Quirk, founder and CEO of eMoov.co.uk, commented:  “A fifth consecutive increase in monthly house price growth certainly makes positive reading given the current market climate, particularly during a traditionally slower time of year as we approach the festive season.

That said, the market is showing signs of winding down with a decline in mortgage approvals and sale instructions. This would suggest the last call for property sales in 2017 has been made, but with sales reaching their highest level this year, there are still plenty looking to complete this side of Christmas which will keep things ticking over.
 
The market should continue to build on this momentum after the December lull and the outlook is promising for the coming year.
 
As the issue of supply is unlikely to be addressed in any meaningful way the lack of stock to meet housing demand should keep prices buoyant, aided by the recent changes to first-time buyer stamp duty, although this will bring a marginal influence much further down the line than widely expected.”

Jonathan Samuels, CEO of the property lender, Octane Capital, said: "The improved performance of the market in the latest quarter suggests the first interest rate rise in a decade may have ignited demand.

On this evidence, the November rate rise has brought prospective buyers out into the open rather than sent them underground. Many buyers may have come to the conclusion that it is better to move now while mortgage rates are still low than further down the line when they could be less competitive.

Ongoing Brexit-related uncertainty will also be a factor for many households. It's hard to know how things will pan out and against that backdrop moving now will be seen as the better option. Despite the slight pick-up over the past three months it's hard to see prices rising materially. A slow rate of growth is the most likely for 2018."

Alex Gosling, CEO, online estate agents HouseSimple.com, says: "These figures suggest a housing market in remarkably good health, but low supply levels continue to distort the real picture.
 
The property market's not on its knees by any means, but it needs a spark from somewhere. Market activity has dropped off, which it tends to do the closer we get to Christmas. But it's definitely dropped off earlier than normal this year.
 
Buyers are viewing, but when the same properties are coming up on searches every week, and very little new stock is being listed, there's not a great deal of enthusiasm to take it beyond the viewing stage. Hopefully the Chancellor's Budget decision to cut stamp duty for first-time buyers will give the bottom end of the market the energy boost it desperately needs.
 
But if homeowners further up the chain aren't selling, there won't be enough affordable properties coming onto the market. And the Government's plan to build more affordable homes isn't going to solve the supply crisis today.
 
The property market will be glad to see the back of 2017 - a year when it has had to cope with Article 50 being invoked, a calamitous General Election, a rate rise and a constant stream of negative Brexit news. Roll on 2018."

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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