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.”
Amount of the United Kingdom that has housing you can afford
Search the UK for more details about a local area
You have a big enough deposit and your monthly payments are high enough.
The prices are based on the local market. If there are 100 properties of the right size in an area and they are placed in price order with the cheapest first, the “low-end” of the market will be the 25th property, “mid-priced” is the 50th and “high-end” will be the 75th.