While the annual rate of house price growth eased in November, prices in the three months to November were 2.4% higher than in the previous quarter - the fastest price growth since January, according to the latest Halifax house price index.
Prices in the three months to November were also up on the same three months a year earlier, by 3.9%.
House prices rose by 0.5% between October and November, following a 0.3% increase in October and marking the fifth consecutive monthly rise. The average price of £226,821 is 3.2% higher than in January (£219,741).
Russell Galley, Managing Director at Halifax Community Bank, said: “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.
“The imbalance between supply and demand continues to support house prices, which doesn’t look like changing in the near future,” he continued. “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.”