The latest Halifax data showed that house prices rose again in December as mortgage rates fell.
House prices picked up 1.1% on the month following a 0.6% increase in November. This marked the third monthly increase in a row following six consecutive declines, and left the average price of a home at £287,105.
On the year, house prices rose 1.7% in December following a 0.8% decline the month before.
Kim Kinnaird, director, Halifax Mortgages, said: “Whilst it’s encouraging that we saw growth in the last three months of the year, this was preceded with property price falls for six consecutive months between April and September.
“The growth we have seen is likely being driven by a shortage of properties on the market, rather than the strength of buyer demand. That said, with mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months.”
In other market news, the Bank of England reported an unexpected increase in UK mortgage approvals for November, reaching their highest level in five months.
Net approvals for house purchases totalled 50,100, surpassing the consensus estimate of 48,500.
The net remortgaging approvals number also rose, from 24,000 to 27,000.
Consumer credit borrowing saw a significant surge in November, reaching its highest level in nearly seven years.
With consumers taking on more credit card debt ahead of the festive season amidst a cost-of-living crisis, net consumer credit borrowing rose to £2bn, up from £1.4bn in October.
The Evening Standard has reported on the lenders who have cut their rates – see here.
