House price growth up 1.9%

Robyn Hall

November 30, 2018

Annual house price growth increased up to 1.9% in November, after hitting a five year low of 1.6% in October, according to Nationwide.

The average price of a UK home now stands at £214,044, after edging up 0.3% over the past month.

Robert Gardner, Nationwide’s chief economist, said: “While house price growth picked up a little in November, it remained relatively subdued at 1.9%, up from 1.6% the previous month.

“Looking forward, much will depend on how broader economic conditions evolve. In the near term, the squeeze on household budgets and the uncertain economic outlook is likely to continue to dampen demand, even though borrowing costs remain low and the unemployment rate is near 40-year lows.

“If the uncertainty lifts in the months ahead and employment continues to rise, there is scope for activity to pick-up through next year. The squeeze on household incomes is already moderating and policymakers have signalled that, if the economy performs as they expect, interest rates are only expected to rise at a modest pace and to a limited extent in the years ahead.

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors, said that the figures were better than expected given the current state of the political market.

He said: “They come on the back of encouraging mortgage approval and transaction figures yesterday which show, once again, that realistic buyers and sellers are taking advantage of very low mortgage rates and shrugging off Brexit concerns.

“Looking forward, we don’t expect any major changes in the period leading up to Christmas unless our departure from the EU is finalised more clearly one way or the other but there is no doubt we are finding there is considerable pent-up demand awaiting more settled times.”

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