UK house prices increased for the second successive month in November largely reflecting shortage of properties, results of a survey by the Lloyds Bank subsidiary Halifax and S&P Global showed Thursday. <\/p>\n
House prices grew 0.5 percent in November from October, when they rose 1.2 percent. The pace of growth also exceeded forecast of 0.3 percent.<\/p>\n
Compared to last year, house prices decreased only 1.0 percent, following a 3.1 percent fall in October. <\/p>\n
Despite the wider economic headwinds, property prices held up better than expected, Halifax Mortgages Director Kim Kinnaird said. <\/p>\n
House prices showed resilience during this year underpinned by a shortage of properties coming to the market rather than any significant strengthening of buyer demand, Kinnaird noted. <\/p>\n
However, there was a slight uptick in activity levels as a result of an improving picture on affordability for homebuyers, Halifax director said. <\/p>\n
With the easing of mortgage rates, they may lead to push up buyer confidence. <\/p>\n
“However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained,” Kinnaird said. <\/p>\n
Data showed that Northern Ireland was the strongest performing region in the UK, with house prices climbing 2.3 percent on an annual basis. <\/p>\n
London retained the top spot for the highest average house price in the UK, at GBP 524,592.<\/p>\n
Market expectations that the interest rate has peaked and the next move from the Bank of England will be a rate cut in the next year helped to ease pressure on mortgage rates. <\/p>\n
The BoE had kept its key interest rate unchanged at 5.25 percent at November and September meetings, snapping a streak of 14 consecutive rate hikes. <\/p>\n
The rate was lifted by a cumulative 515 basis points since December 2021. <\/p>\n