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UK house prices rise for third month amid property shortage, Halifax says
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UK house prices rise for third month amid property shortage, Halifax says
Halifax says with mortgage rates easing, confidence among buyers may improve in coming months
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Today's agenda
House prices in the UK rose for the third consecutive month in December, reflecting a shortage of properties on the market, according to the mortgage lender Halifax. It added that with mortgage rates easing, confidence among buyers might improve in the coming months.

The cost of an average home rose by 1.1% to £287,105, just over £3,000 more than in November and the highest level since March, Halifax said. This comes after monthly gains of 0.6% and 1.2% in November and October.

Compared with December last year, values were up 1.7%, after a 0.8% drop in November.

Kim Kinnaird, the director of Halifax Mortgages, said: "The housing market beat expectations in 2023 and grew by 1.7% on an annual basis. The average property price is now £4,800 higher than it was in December 2022. While it’s encouraging that we saw growth in the last three months of the year, this was preceded with property price falls for six consecutive months between April and September.

"The growth we have seen is likely being driven by a shortage of properties on the market rather than the strength of buyer demand. That said, with mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months."

Across all the UK regions, Northern Ireland recorded the strongest house price growth in 2023, as properties increased in value by 4.1% to £192,153. Property prices in Scotland increased by 2.6% to £205,170. At the other end of the scale, the south-east fell most sharply; houses there now average £376,804, a drop of £17,755, or 4.5%.

Halifax forecasts price falls of between 2% and 4% this year.

Kinnaird said: "As we move through 2024, the UK property market will continue to reflect the wider economic uncertainty, and buyers and sellers are likely to be naturally cautious when considering making a move. While wage growth is now above inflation, helping to ease cost of living pressures for some and improving housing affordability, interest rates are likely to remain elevated for as long as inflation remains markedly above the Bank of England’s target."

Later today we will get the US non-farm payrolls report for December, which is expected to show that the economy added 150,00 jobs after November’s 199,000 increase.

The agenda
• 9.25am GMT: UK new car sales for December
• 9.30am GMT: S&P Global/Cips construction PMI for December
• 10am GMT: eurozone inflation for December (forecast: 2.9%)
• 1.30pm GMT: US non-farm payrolls jobs report for December (forecast: 150,000)

We’ll be tracking all the main events throughout the day ...
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John Crace

Guardian columnist

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Well, 2023 didn’t exactly go to plan, did it? Here in the UK, prime minister Rishi Sunak had promised us a government of stability and competence after the rollercoaster ride of Boris Johnson and Liz Truss. Remember Liz? These days she seems like a long forgotten comedy act. Instead, Sunak took us even further through the looking-glass into the Conservative psychodrama.

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