House prices were 1.4 per cent higher between September and November, compared to the previous three months, at £204,552 for the average property.
This was the smallest rise on measure since December 2014, but did nothing to convince analysts that housing would become more affordable in the short term.
“The increasingly acute imbalance between supply and demand is causing prices to rise at a robust pace. A situation that is unlikely to reverse significantly in the short-term," Martin Ellis, Halifax housing economist, said.
The number of homes available has hit a record low
House price volatility saw the actual price of homes decrease 0.2 per cent between October and November, but Halifax said that the quarter-on-quarter change was a more reliable indicator of the underlying trend.
Supply dropped to a new record low. Halifax said that new instructions by homesellers fell in October for the ninth successive month, or the 14th in the last 15.
Buyers are priced out of the market as house prices grow to five times average earnings
House prices over five times annual earning are pricing buyers out of the market and contributing to the slowing of house price growth.
Sales were stronger than in the same month last year, increasing 4.7 per cent. The number of mortgage approvals maintained an upward trend.
Halifax has said it expects annual growth of 4 to 6 per cent in 2016.
Josh Ryan-Collins, associate director of economy and finance) at the New Economics Foundation, said that if prices continue to rise as expected, the only way to purchase homes will be to increase mortgage debt.
"Households will continue to pile debt on the debt with the hope of getting onto the housing ladder. Given UK household debt to GDP is already one of the highest in the world, this is a ticking time bomb for the stability of our financial system and the wider economy," Ryan-Collins said.
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