Prices rose from 5.2% in October to 6.0% in November after a 0.8% quarterly and 0.2% monthly increase.
Annual house price growth rose in November for the first time in eight months, the Halifax house price index has revealed.
Prices rose from 5.2% in October to 6.0% in November after a 0.8% quarterly and 0.2% monthly increase. In March growth peaked at 10%.
Russell Quirk, founder and chief executive of eMoov.co.uk, said: “Yet more signs of life shooting from the frosty ground of the UK property market with the first annual increase in eight months providing UK homeowners with an early Christmas gift.
“Many in the industry have been quick to put the boot in over the last few months where the UK property market is concerned, hanging gloomy predictions on a dwindling level of demand in the market.
“It would seem this simply isn’t the case. The driving factor behind inflating house prices is an imbalance between supply and demand and, with house prices spiking this late in the year, it would seem there is certainly a sustained level of buyer demand present in the current market.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “November’s figures show a slight increase in monthly house price growth, but nothing like the thundering rate that we got accustomed to over the first half of the year.
“Despite the negative perceptions that often accompany such slowdowns, this cooling of house price inflation should be viewed positively. The fact remains that there is still a huge disparity between wage growth and property price inflation.”
According to Halifax’s Housing Market Confidence Tracker confidence in the housing market has fallen to its lowest point in three years but 57% still expect the average UK price to be higher in a year’s time.
With lenders including HSBC yesterday increasing their rates, Mark Harris, chief executive of mortgage broker SPF Private Clients, wondered what will happen to the base rate.
He said: “Borrowers have been spoilt with a prolonged period of record low mortgage rates but have been reminded this week that they may not necessarily be around for ever as some lenders have started raising their fixed rates.
“HSBC increased a range of fixes yesterday, while lenders such as Nationwide, Skipton and West Bromwich have recently increased their ten-year fixed rates.
“This reflects the movement in swap rates, which ultimately underpin the pricing of these products and means lenders either face squeezed margins or increase their fixed rates in order to protect their profits.
“Looking forward to next year, the big unknown is what will happen with interest rates as the market generally gets this wrong. All manner of external factors - Trump’s election, uncertainty in Europe - can have an impact. It is all about sentiment which is very hard to predict.”
