Unemployment has now reached a four decade low. Wage growth is now potentially showing signs of growing faster than inflation for the first time in a long time. Although these factors favour the possibility of housing affordability coming into focus for many, house prices are still out of reach for many. House prices did however grow at a slower rate than typically seen at this time of year. According to data from Halifax, prices grew slowly during the month of November at a rate not seen since the year 2012.

House price growth is typically viewed as the backbone of health of the housing market. Growth overall in the UK of house prices has been meteoric over the past ten years, especially within the city limits of London. Affording a home has become quite a challenge for those considering a move home. First time buyers have been hit especially hard and have run into numerous roadblocks to the process.

House prices fell during the month of November 1.4% compared with the month before. The average price of a home now sits at £224,578.

Several factors are blamed for sustained growth of house prices. One is the continued shortage of supply of houses for sale. Lack of supply plagues several areas of the country and leads to higher prices for anyone looking to purchase property.

Hansen Lu, a property economist at Capital Economics commented on house price growth and what the short term holds for prices, saying: “House prices are still very high relative to incomes and this is unlikely to change soon.”