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November sees UK house price growth ease

The growth of UK house prices eased in November according to mortgage lender the Halifax.

In their latest house price index, house prices in the last three months were 1.4% higher than in the previous quarter, the lowest increase in growth since last December.

House prices between October and November dropped by 0.2%. Last month saw a one per cent increase, which, Halifax said, continued “the monthly volatility seen since the summer”.

Prices in the three months running into November were up 9% on the same period last year. This was down on October’s figure of 9.7% but reflective of the figures seen throughout 2015.

The Halifax also reported that the supply of housing reached a record low and fell in October for the ninth successive month.

The Halifax remains confident that house prices will continue to experience strong growth. Martin Ellis, Halifax Housing Economist, said: “Solid economic growth, rising real earnings and falls in already very low mortgage rates have combined to stimulate housing demand this year.

“The increasingly acute imbalance between supply and demand is causing prices to rise at a robust pace. A situation that is unlikely to reverse significantly in the short-term.”

The rising costs of housing make the need for more affordable starter homes all the more critical. Last month the Chancellor George Osborne unveiled his new housing programme, the biggest since the 1970s, and yesterday David Cameron announced plan to extend the right to buy scheme to all more people the opportunity to buy their own home.