House prices in the three months to November were 2.1% higher than in the preceding three months. Whilst higher than in October, this quarterly rate was in line with the increases of 2.0-2.1% recorded throughout June to September.
Commenting, Martin Ellis, housing economist, said:
“House prices continued to rise in November. The annual rate of price increase rose again with prices in the three months to November 7.7% higher than in the same three months last year.
“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.”
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