UK house prices still rise after rate increase

British house prices rose another 1% in November despite the impact of the first hike in interest rates for almost four years, research showed today.

The Halifax said annual house price inflation was 14.1% higher than a year earlier, although this was down on the 16.7% reported a month ago.

Halifax chief economist Martin Ellis said the decline brought the annual rate increase closer to the long-term average of 8%.

He added: “The gradual easing in house price growth reflects a market returning to average house price rises after two years of exceptional increases.”

Britain’s biggest mortgage lender added that the average price of a property now stood at £139,405 (€199,344).

Rival lender Nationwide recently put November’s price growth at 1.2% after a 2% gain in October.

It said last month’s increase in the Bank of England base rate had been offset by favourable underlying economic conditions while mortgage rates were still historically low and employment high.