House price inflation hits three-year low, says Halifax

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Annual house price inflation in the UK is now at its lowest rate since July 2013, according to Britain's largest mortgage lender, the Halifax.

It fell to 5.2% in the year to the end of October, down from 5.8% in the previous month.

House price inflation has nearly halved since hitting a peak of 10% in March this year, the Halifax said.

However, it said price rises remain "robust". The average price of a house or flat is now £217,411.

"This expected slowdown appears to have been largely due to mounting affordability pressures, which have increasingly constrained housing demand," said Halifax's chief housing economist, Martin Ellis.

"Whilst house price growth may ease further in the coming months, very low mortgage rates and a shortage of properties available for sale should help support price levels."

Last week, the Nationwide said its survey had found house price inflation easing to 4.6% a year.

On a monthly basis, the Halifax figures show house prices jumping by 1.4% during October alone, the largest increase since March this year. However, monthly measures are notoriously volatile.

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