-Martin Ellis, Halifax
British house prices climbed for the second consecutive month in December, driven by a shortage of affordable homes. According to the UK's biggest lender, Halifax, the House Price Index grew 1.7% to £222,484 month-over-month in December, surpassing the 0.3% rise forecast, up from November's upwardly revised gain of 0.6%. This was the fourth straight monthly increase and the largest gain since March 2016.
Meanwhile, in the three month period ended December 2016, house prices advanced 6.5% year-over-year after climbing 6.0% in the three months to November. The house price inflation rate climbed 2.5% and 6.5% quarter-over-quarter and year-over-year in the Q4, respectively. The average house price jumped around £4,000 last month, the fastest increase since the Brexit vote.
Separately, Nationwide reported earlier that capital home prices rose at a slower pace than an average rise in the UK, for the first time in 8 years. However, house prices advanced 4.5% on annual basis, at the same rate as in 2015. Analysts suggest that the UK housing market growth is expected to slow 1-4% during 2017.
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