The UK’s house price recovery “continued in November”, according to the Nationwide Building Society, as falling mortgage rates help to warm up demand.
After a bumpy year for the housing market UK house prices rose 0.2% month-on-month in November, on a seasonally-adjusted basis. That’s the third monthly rise in a row – surprising City economists who expected a 0.4% monthly fall.
On an annual basis, prices were 2% lower than a year ago – a weak result, but the strongest reading since February.
The average price of a house sold in November was £258,557, which (you may note) is actually slightly lower than October’s £259,423 – but that’s before seasonal adjustments.
This data only covers lenders who take out a mortgage, rather than cash buyers, but it’s still a good test of the housing market.
The housing market is benefitting from the drop in UK inflation, which is leading to expectations that UK interest rates will be lower than previously feared. Several mortgage lenders have cut their rates in recent weeks.