UK house prices rose 0.2 per cent in November compared to October, according to the latest Halifax house price index.
The average UK property was worth £218,002 in November.
Meanwhile, property prices in November 2016 were up 6 per cent on the previous November.
House prices in the three months to November rose 0.8 per cent on the previous three months.
Halifax housing economist Martin Ellis says: ““Despite November’s pick-up, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10 per cent in March.
“Heightened affordability pressures, resulting from a sustained period of house price growth in excess of earnings rises, appear to have dampened housing demand, contributing to the slowdown in house price inflation.”
Ellis adds that low mortgage rates and a serious property shortage will help keep house prices high, but that that growth may slow in the coming months.
Mortgage Advice Bureau head of lending Brian Murphy says: “The Halifax also reports that mortgage approvals have stabilised and were unchanged in the three months to October, along with mortgage approvals increasing for a second month in a row.
“This possibly suggests that there may be an increase in market activity in the coming months, as consumers are getting their ducks in a row early and securing their mortgage prior to then looking for their new property.
“Given the ongoing significant lack of stock in many areas of the country, together with record low mortgage rates, even though we are approaching the seasonal Christmas lull, it’s possible that the market will remain steady going into early 2017.”
Yorkshire Building Society chief economist Andrew McPhillips says: “Although annual house price inflation rose in November as a result of a slight recovery in demand, we expect price growth to slow in the coming months.
“House prices have risen well beyond wage growth in recent years and we could see a decrease in demand as a result of more people being priced out of the market. That said, property supply remains limited which should cause the expected slowdown in price growth to be more gradual.”