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Good news for UK: House price growth falls to six-year low

Staff Writer |
House prices in the UK dropped much more than expected last month, with annual growth falling to a six-year low as political and economic uncertainty ramped up.

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Compared to the month before, house prices fell 1.4% in November, according to research from lender Halifax, while the market had been expecting a 0.2% increase.

Annual price growth in November limped to 0.3%, the lowest level since the end of 2012, down from the 1.5% growth seen in October and well below the 1.0% consensus forecast.

"While this is the lowest rate of growth in six years, it remains within our forecast range of 0% to 3% for 2018," said Halifax managing director Russell Galley.

Alongside historically low mortgage rates, he said the relatively limited supply of new and existing properties for sale continued to sustain house prices nationally.

This was being undermined by a reduced supply of bank credit, as the Bank of England's latest credit conditions survey indicated that uncertainty about Brexit has made banks more cautious about lending, with the net balance of lenders intending to reduce the supply of secured credit in final quarter being the largest since the financial crisis.

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