According to the lender’s latest house price index, quarterly price growth for October to December remained at 1.6%, indicating a slight softening. However, annual growth in house prices was robust at 9.5%, a substantial gain on the same period a year earlier.
Martin Ellis, Halifax’s housing economist, said: “There remains a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale. This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices.”
Home sales were also up, having risen by 5.2% from September to November, compared to the same period a year earlier.
Data published by the Bank of England also showed that the volume of mortgage approvals for house purchase increased by 1% between October and November and 16% year-on-year.
Crucially, supply has fallen to a record low, putting more upward pressure on house prices. New instructions by home sellers fell in November for the 10th successive month and the overall stock of homes available for sale fell to a new record low, according to the Royal Institution of Chartered Surveyors.
Mark Posniak, managing director of Dragonfly Property Finance, said: “With supply as weak as demand is strong, it’s same old, same old on the house price front.
“Looking into 2016, it’s hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rate rises in the near future unlikely.
“The jobs market is strong, consumers are confident and mortgage rates remain very low. Against this backdrop, further price rises are almost inevitable.”
