Average UK residential property prices rose by 1.7% in November, representing a £3,500 increase, according to the Halifax.

The latest Halifax house price index puts the price increase down to a shortage of properties for sale and a lack of new family homes.

The mortgage lender says that the cost of an average home now stands at £187,995, which is 9.6% more than a year ago.

Martin Ellis, chief economist at Halifax, said: "The marked slowing in real average earnings growth over the past six months, and a squeeze on households discretionary income due to the substantial increase in utility bills during the last year, should temper housing demand. As a result, we expect house price inflation to ease over the coming months."