HOUSE prices surged ahead by two per cent during November as consumers regained their confidence following the September 11 atrocities, Britain's biggest mortgage lender has said.

Halifax said property prices rose by their largest amount since September 2000, last month, to bring annual house price inflation for the year to the end of November, to 11.5 per cent.

The increase offsets a 0.5 per cent fall in prices reported in October, and the average house price is now £96,010.

The group said it expected prices to continue rising during the coming months, but at a slower rate than previously.

The figures are broadly in line with ones reported by Nationwide earlier in the week, in which the building society said property prices rose by 0.7 per cent during November, bringing annual house price inflation to 12.8 per cent.

Gary Styles, head of group economics at Halifax, said: "While this was the largest monthly rise since September 2000, it mainly reflects a bounce-back in confidence from the lows seen in the aftermath of the September terrorist attacks.

"House price movements over the past three months indicate a clear downward shift in the underlying trend, with prices increasing at a somewhat slower pace compared with earlier in the year.

"This is consistent with reports from estate agents and house-builders that show the level of housing activity is slowing."

He said economic growth, low interest rates and good housing affordability levels, should support the market.