There has been yet another indication that house prices are still rising. According to the latest survey by the Halifax bank, annual house price inflation increased to 9.6% in November. Prices were up 1.7% on the October figures and the average house in the UK now costs £187,995. Unfortunately for first time buyers they are the hardest hit. The price of first homes is rising almost 3 times as fast as the average salary.

However, the Halifax does expect house price inflation to slow down in the coming months. Average earnings have not risen as quickly in the last 6 months and there have been big increases in household utility bills. The Halifax says that these factors will contribute to a reduction in demand for houses.

The Halifax report on house prices is similar to surveys from the Nationwide, the Land Registry and others. However, figures from the Bank of England show that new mortgage approvals are at the highest level since 2003. This may be because the economy has been growing steadily and employment has increased.

The Royal Institute of Chartered Surveyors have said that enquiries from homebuyers have fallen since the summer. Similarly the House Builders' Federation have seen a reduction in those looking at new homes. These are further indicators of a possible slowdown to come in the housing market.

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