UK property prices rose by 0.5% in November, according to Halifax, taking the average UK house price to £226,821.

The lender said that the annual change in prices slowed to 3.9% (from 4.5% in October), but quarterly growth reached 2.4%, the fastest rate of growth since January and the fourth jump in a row.

Russell Galley, managing director of Halifax Community Bank, said: “The imbalance between supply and demand continues to support house prices, which doesn’t look like changing in the near future.

“Further ahead, increasing affordability issues, as price increases continue to outstrip wage growth, are likely to curb housing demand and cause price growth to ease.”

Stamp Duty cut to boost prices

Halifax noted that the Government’s first-time buyer Stamp Duty cut is expected to provide some stimulus to demand, particularly in London and the South East where the impact is greatest.

Jeff Knight, director of marketing at Foundation Home Loans, agreed, and added that this could push up prices: “November saw the Chancellor scrap stamp duty for first time buyers, a move the OBR predicts will push prices up by 0.3%. Increased demand will certainly place upward pressure on the market – at least until reforms to the planning system start to have an effect and more land is made available for the promised thousands of new builds.

“However, stalled Brexit negotiations will dampen confidence as uncertainty takes its toll. This, alongside the age-old tale of weak supply, continues to subdue to market’s full growth potential.”