House prices rose another one per cent in November despite the impact of the first hike in interest rates for almost four years.

The Halifax said annual house price inflation was 14.1 per cent higher than a year earlier, although this was down on the 16.7 per cent reported a month ago.

Halifax chief economist Martin Ellis said the decline brought the annual rate increase closer to the long-term average of eight per cent.

He said: "The gradual easing in house price growth reflects a market returning to average house price rises after two years of exceptional increases."

Britain's biggest mortgage lender added the average price of a property now stood at £139,405.

Rival lender Nationwide recently put November's price growth at 1.2 per cent after a two per cent gain in October.

It said last month's increase in the Bank of England base rate had been offset by favourable underlying economic conditions while mortgage rates were still historically low and employment high.

Yesterday's study, on the same day the Bank of England's monetary policy committee began its latest two-day rate setting meeting, pointed out the affordability of properties remained good.

It said the average homeowner currently paid 13.6 per cent of their post-tax income to support mortgage payments. That compares with an average of 21 per cent in the last 20 years.

Thursday December 04, 2003