MNI DATA ANALYSIS: UK Annual House Price Gains Slow In Nov

--Halifax UK November House Prices +0.3% m/m; +2.4% 3m/3m; +3.9% 3my/y

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

November at 0.3%, but the annual pace slowed to 3.9% from 4.5% in October. 

     On a quarterly basis, house prices rose 2.4% in the September-November

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

data from Halifax, the UK's leading mortgage provider.

"Whilst the annual rate of growth eased in November, with the first decline in

this measure since July, when looking at quarterly change prices in the three

months to November were marginally higher than in the preceding three months;

the fourth consecutive quarterly increase," said Russell Galley, Managing

Director, Halifax Community Bank.

     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 see a limited beneficial impact

from the recent stamp duty changes for first time buyers, mainly in London and

the South East.

     "The imbalance between supply and demand continues to support house prices,

which doesn't look like changing in the near future. Further ahead, increasing

affordability issues, as price increases continue to outstrip wage growth, are

likely to curb housing demand and cause price growth to ease. We do expect the

Government's first-time buyer Stamp Duty changes to provide some stimulus to

demand, particularly in London and the South East where the impact is greatest,"

Galley said.

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

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