ONS house price index rebounds for first time since Brexit vote

UK house prices rose in November for the first time since July, according to the Office for National Statistics on Tuesday.

ONS's House Price Index data, which is based on mortgage completions, showed house prices rose 1.1% month-on-month in November and rebounded 6.7% year-on-year, having dipped to a 12-month low of 6.4% in October from 6.6% in September, 6.8% in August and 9.3% in June.

The monthly rate had dipped 0.1% in October after a flat September and a drop of 0.4% in August.

England was the main driver, with house prices up 7.2% to an average of £234,000, with an average London house costing£482,000 in November, followed by the South East and the East of England, where average prices stand at £313,000 and £278,000 respectively.

The average for a house in Wales rose 4.1% to £147,000, Scotland gained 3.3% to £143,000 and the average price in Northern Ireland unmoved from £124,000.

Economist Howard Archer at IHS Markit said November’s firming in house prices showed the market was hardly racing ahead.

"With housing market activity up from its August lows and the economy currently resilient, house prices look likely to rise modestly in the near term," he said.

"However, we suspect that housing market activity and prices will come under increasing pressure as 2017 progresses. Consequently, we suspect that house price gains over 2017 will be no more than 2%."