Like a Hollywood monster, the UK housing market refuses to stay dead. Some commentators have argued for years that the overvaluation of house prices presages a potential collapse, with a severe impact on consumer demand.

But while the market has undoubtedly slowed – Nationwide, the UK’s largest building society, said house prices were flat this month for a 2.4 per cent annual gain – there has been no crash. Indeed, the trend in mortgage approvals suggests a potential revival next year. Approvals hit 112,000 this month, the highest level in
17 months, according to Malcolm Barr of JPMorgan. That compares with 76,000 in November 2004 and a series average of 97,000.