House prices in pre-festive lull

The London market could be picking up

The recent surge in house prices is "running out of steam", according to a new survey.

Asking prices fell by 0.1% in November compared with a rise of 3.33% last month, according to the Rightmove property website.

Annual house price growth in England and Wales is now below 10% for the third month running, at 9.9%.

The report covers asking prices to 7 November, the day after the Bank of England put up interest rates to 3.75%.

Mike Shipside, commercial director of Rightmove, said: "The strong Autumn surge we saw last month is already running out of steam and the market is entering into the traditionally calm period in the run-up to Christmas - as happens every year.

"I wouldn't expect any big rises in house prices now till after the new year...maybe the housing market didn't need the rate increase at all."

Regional prices

Figures released by the property website show that far from booming, prices have been falling in regions outside London.

Prices rose in most western regions, with Wales up 4.4%, West Midlands up 1.9%, North West up 1.1% and South West up 0.4%.

The East Midlands also rose by 0.9%.

But most northern and eastern regions recorded declining asking prices.

Prices fell by 4.1% in the North, 2.2% in the South East and 1.8% in both Yorkshire and Humberside.

The North West and Wales have seen the biggest gains, on an annual basis.

Prices are up 24.5% in Wales and 20.2% in the North West, with the North, Yorkshire and Humberside and the East Midlands all around the 17% mark.

Mr Shipside said the figures provided evidence the market was cooling down, part of which he said was down to "the symbolic rise in interest rates".

London recovery

The London market has cooled off over recent months, but Rightmove said it was now showing signs of recovery.

About Rightmove Rightmove's data is based on asking prices from the site's 4,000 member estate agents

Asking prices rose again in Greater London, by 1.1% on top of a large surge of 4.5% last month.

Average prices in the capital have increased to £265,725 from £262,868.

"It looks as if we will be ending the year with house price inflation virtually flat in London, with zero change year-on-year and ongoing prices pretty stable," he said.