The annual pace of decline in UK house prices eased somewhat in November, as house prices rose on a monthly basis, according to new data from Nationwide on Friday.
On a seasonally adjusted basis, UK house prices rose by 0.2% in November from October, with growth slowing slightly from a 0.9% on-month rise in October.
On an annual basis, prices were 2.0% lower in November, slowing from the 3.3% fall in October.
The average house price, without seasonal adjustment, was £258,557 in November, down from £259,423 in October.
Robert Gardner, Nationwide’s chief economist, says: “there has been a significant change in market expectations for the future path of Bank Rate in recent months which, if sustained, could provide much needed support for housing market activity.”
London-listed housebuilders were marginally higher following the data. Berkeley Group (BKG) was up 1.82%, Persimmon (PSN) rose by 1.44% and Taylor Wimpey (TW.) was up 1.41%.
Alice Haine, personal finance expert at Bestinvest, says first-time buyers can be hopeful about better purchase prices, though interest rates on mortgages may remain high for some time.
“Better deals certainly offer hope to first-time buyers that their dream of property ownership may finally become a reality,” she says.
“Where prices go from here will depend on the dampening effect 14 interest rate rises have on people’s disposable incomes and how soon the BoE cuts the headline interest rate – a move Governor Andrew Bailey stresses won’t happen for some time.
“For now, interest rates of 5.25% are still sky-high in comparison to two years ago, just before the BoE first began its tightening cycle.”
