Halifax’s latest house price index has reported that house prices in the three months to November rose by 7.7% year-on-year, according to the latest house price index from Halifax.
The average price of a home in November totalled £174,910, with prices rising by 1.1% between October and November.
Martin Ellis, Halifax’s housing economist, said: “Stronger demand, combined with an insufficient increase in housing supply, has resulted in increases in house prices accompanying higher activity this year.
“Low interest rates, improvements in consumer confidence and official schemes, such as Funding for Lending and Help to Buy, all appear to have boosted demand.
“However, continuing pressures on household finances, as earnings fail to keep pace with consumer price inflation, are expected to remain a constraint on the rate of growth of house prices.
“We are also seeing signs of a revival in housebuilding, which should help bring supply and demand into better balance and curb upward pressure on prices over the medium and longer terms.”
James Hall, director of estate agent, Fishneedwater, said: “The property market hit the ball out of the park yet again in November.
“Activity is strong at all levels of the market, although first time buyers are still providing a lot of critical momentum.
“What’s driving the sharp rise in transactions and prices? The answer is incredibly low mortgage rates, even at higher loan-to-values, and the fear of many people, especially first time buyers, that they will be left behind.
“In recent months, buyers have been acutely sensitive to the fact that mortgage rates are as low as they will ever be and so are piling in.
“While we are likely to see a slight drop off during December for the usual reasons, there is no sign that the market will let up in the first few months of next year.”
