Housing market cools for winter but price growth beating wages

HOUSE prices this month are still up four per cent on November last year, despite a small seasonal dip from October.

According to Rightmove’s latest house price index, London prices are up by 6.9 per cent in the same period. In the year to September, average weekly earnings only rose by 0.8 per cent.

Between October and November, prices across the UK fell by 2.4 per cent, but strong growth in earlier months this year still leaves them at a higher level, year on year.

In the run up to Christmas, prices are usually more muted, but four per cent annual price growth is the fastest seen in November since 2007, before the crisis.

A survey by the firm also found that one in four potential first time buyers or sellers were not aware of the government’s controversial second phase of Help to Buy.

Rightmove’s Miles Shipside added: “At this time of year, it’s mainly those with a more pressing need to sell that come to market, driving average asking prices down. It is not the start of a major price downturn.”