MNI DATA ANALYSIS: UK Annual House Price Gains Accelerate

--Halifax UK October House Prices +0.3% m/m; +2.3% 3m/3m; +4.5% 3my/y

     LONDON (MNI) - UK house price inflation slowed on a monthly basis in

October to 0.3% from 0.8% in September, but the annual pace picked up to 4.5%

from 4.0% in September due to a favourable base effect. 

     On a quarterly basis, house prices rose 2.3% in the August-October period,

the fastest pace of increase in this measure since February according to data

from Halifax, the UK's leading mortgage provider.

"The annual rate of growth has continued to rise for the third month in

succession, rising from 4.0% in September to 4.5% in October," said Russell

Galley, Managing Director, Halifax Community Bank, adding that "the average

house price is now stg225,826 - exceeding last month's previous high."

     The Halifax said continued tight supply has continued with sales

instructions hovering near an all time low, while sold employment growth has

also contributed to house price growth. They do not see the recent Bank of

England interest rate rise as a barrier to a solid property market.

     "The fact that the supply of new homes and existing properties available

for sale remains low, combined with historically low mortgage rates and a high

employment rate, continues to support house prices and is likely to do so over

the coming months. Increasing pressure on household finances and continuing

affordability concerns are some of the factors likely to dampen buyer demand.

That said we do not anticipate the Base Rate rise will be a barrier to buying a

house," Galley said.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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