Prices rose sharply in November

House prices rebounded in November despite the national lockdown in England, rising 1.2% on the month, according to the latest data from the Halifax.

The firm said the rebound – after it reported slower growth in October – meant prices were now 7.6% up on the year.

In addition, prices are now up 3.6% in the last three months alone, despite the much smaller 0.3% rise in October. The Halifax said that growth over the last five months was the strongest for any five month period since 2004.

The news comes a week after rival the Nationwide also reported a big increase in prices in November – of just under 1% - which it said added up to the largest year-on-year rise in five years.

Russell Galley, managing director at the Halifax, said: “The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year.”

However, Galley added that agrees sales fell to their lowest level in five months in November, and that the economic environment looked challenging. He said: “With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”