Hometrack survey shows average cost of homes rose 0.2% but new buyer registrations are slowing in run-up to Christmas
House prices rose for the fourth consecutive month in November but the pace of the recovery may slow in months ahead, according to new figures.
The latest report from housing intelligence group Hometrack showed the average cost of a home in England and Wales increased by 0.2% to £156,700, driven by rising demand.
But the body said the rate at which new buyers were coming to market was beginning to falter and a drop off in demand was likely to extend beyond the normal pre-Christmas glitch.
Richard Donnell, Hometrack’s director of research, said: "The pick up in market activity over 2009 has been driven by rising demand yet the latest survey shows that new buyer registrations grew by just 0.1% in November, the lowest level since the start of the year.
“A decline in demand is inevitable in the run-up to Christmas but there are signs that the upward pressure on prices is likely to decline in the months ahead”
He added that the price increases of recent months had been seen only in certain parts of the country, while others had seen no change or continued to suffer falls.
Prices in London rose by 0.4% and by 0.3% in the south west in November. But all other regions saw increases of 0.1% or no change.