LONDON (SHARECAST) - The pace of the rise in UK house prices picked up again in November according to the latest data from property website Hometrack.
Hometrack estimates house values rose by 5.3% in November compared with a year ago, up from an annual rate of 4.9% in October, and increased by 0.6% month-on-month.
"Buyers may have shrugged off the August interest rate rise, but the prospect of a further increase in November seems to have forced those who were thinking of moving to actually do so," said Richard Donnell, Hometrack director of research.
"The result has been a sustained increase in market activity over the last two months. But set against a background of dwindling supply, house prices have continued to rise, a trend that has now spread beyond London and the South East."
Donnell, though, expects the rate of house price inflation to ease as the impact of recent base rate rises begins to bite.
"We are forecasting that average house prices will rise by 4% over 2007 supported by low levels of housing turnover and prices continuing to be set by the `haves' already on the housing ladder," he said.
The strength of the market was further underlined by mortgage approvals, which rose by 3.7% in October.
The BBA said mortgage approvals for house purchase rose to 74,997 in October, the fourth month of gains.
"The secured lending market undoubtedly remains robust, but after discounting price growth, lending volumes are not dissimilar to the same time last year," said David Dooks, BBA's director of statistics.
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