House prices still growing faster than inflation, says Halifax

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House prices across the UK are still growing faster than the general rate of inflation, according to the country’s largest lender.

The Halifax said that prices rose by 3.9% in the year to the end of November, down from 4.5% in October.

Despite the slowdown, the pace remains above Consumer Prices Index (CPI) inflation, which is currently 3%.

Last week, rival lender Nationwide said prices had risen by 2.5% over the past year.

According to the Halifax, the average house or flat in the UK is now selling for £226,821.

“The imbalance between supply and demand continues to support house prices, which doesn’t look like changing in the near future,” said Russell Galley, the managing director of Halifax Community Bank.

However, in the long term he said house price growth was likely to decline.

“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.”

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