UK house prices rise 3.9%

UK house prices were up 3.9% in the year to November, according to the latest reading from the Halifax index.

It marked a deceleration from the 4.5% pace of increase registered in the prior month, but still painted a rosier picture of the market compared with other house prices indices.

Halifax data showed UK home prices rose 0.5% in November and 2.4% in the three months to November.

The lender said the dearth of supply in the market and a shortage of new homes coming available was providing support for prices.

Conflicting data

However, earlier data released from Nationwide and Rightmove has suggested prices were up by only 0.6% and 0.1% respectively in the three months to November.

Citing the lack of housing supply, Halifax struck a relatively upbeat tone on the outlook for the market.

Nevertheless, sceptics point to the impact of weakening consumer spending power in the midst of falling real wages and last month´s interest rate hike from the Bank of England.