The UK housing market remains in good health, the latest house price index for The Halifax has found. With prices increasing by 1.2% in October, leaving annual inflation at 16.7% this looks healthy in comparison with the corresponding annual figure of 24.5% this time last year.

The survey also found that the market was not slowing as quickly as it had originally predicted, although annual price rises were down on last year.

The Bank of England meets later this week to determine the cost of borrowing, which is expected to be raised by a quarter of a percentage, adding about £4 a week to the average mortgage, a figure The Halifax says most homeowners can easily absorb.

Chief Economist Martin Ellis commented on the survey findings: ‘House prices are now 16.7% higher than a year ago showing that the housing market remains strong and is still underpinned by strong fundamentals.’

Findings also indicated that employment levels remain strong, and that the next move in interest rates is likely to be upwards.