Halifax: house prices up 7pc, but growth is slowing One reason to account for the slowdown in growth could be increased supply, the lender mooted. "Sentiment towards selling has also improved in recent months in response to the pick-up in the market, which should help to increase the availability of properties on the market over the coming months," said Martin Ellis, Halifax's housing economist. It said that although October's rise was the ninth consecutive monthy increase, the average price remained "significantly below" the August 2007 peak. And noting the increase in transaction activity, Mr Ellis said it too was "significantly below the levels recorded in 2006 and 2007 with sales in 2013 still 36pc lower than in 2006." Two other property firms produced research at the same time as Halifax, both also downplaying the likelihood of a bubble. Property group Savills published five-year forecasts which showed a gradual slowing of inner London property prices. And Foxtons, the estate agent chain operating in the capital, said a lack of supply was "muting" the market. Jonathan Hopper, managing director of buying agents Garrington Property Finders, said of Halifax's data nationally: "Despite a slight drop-off in price growth in the last three months, demand amongst buyers is there now and that's likely to drive prices higher. Buyer confidence has been stoked by a run of upbeat economic news and cheap mortgages, and a wave of pent-up demand has been unleashed by people's nagging fear of being left behind as prices head skywards once again. Ben Thompson of Legal & General Mortgage Club, the broker, said the data continued to highlight a "two-speed" market. He said: "In places like London and the South-East we are seeing prices gather pace quickly which is raising concerns in some quarters. However, in many other parts of the country there are localised market issues that persist. It is for that reason that calls to pull stimulus such as the extension of Help to Buy and worries about a credit bubble are premature. What next for house prices and rates? See updates in our weekly newsletter: Click here and enter your email