Nationwide and the Halifax both report an increase in house prices indicating the return of consumer confidence in the market following the slowdown during the summer.
The Halifax reports that house prices rose by 0.4% in November and the annual rate of house price inflation increased from 5.7% in October to 7.1% in November.
The survey also shows that over the past two and a half years the price of the standard-ised average property has risen as a multiple of average earnings from 3.0 to 3.6 times to now stand at £86,613, but this is still below the 5.0 peak recorded in May 1989.
The monthly house price survey by the Nationwide shows that house prices rose by a seasonally adjusted 0.9% in November, which puts house prices 9.1% higher than the same period last year, and the average house at £81,770.
David Parry, Nationwide’s divisional director of planning, said: “This is the third monthly price rise in succession and shows confidence beginning to return to the market after the summer slowdown.
“Base rate stability combined with a competitive mortgage market is likely to have contributed to the pick-up in confidence and, with employment prospects remaining favourable, we would expect further modest price rises in the coming months.”
The October report by the Royal Institute of Chartered Surveyors (RICS) confirms the revival of the housing market and indicates that it is being led by an upturn in the London market as 19% more surveyors reported price rises than falls.
However, it is not believed that is the start of another price surge. Ian Perry, RICS national housing spokesman, said: “With differing economic conditions and the traditionally slow market during the Christmas and new year period I would expect prices to continue to stabilise over the next few months.”