UK house prices: Growth hits seven-month high
UK house price growth ticked up this month, showing the strongest annual rise since April.
However, annual house price growth remained below one per cent for the 12th month in a row at 0.8 per cent, reaching an average price of £215.734.
House prices were up 0.5 per cent month-on-month, according to the latest Nationwide data.
Read more: London house prices show ‘signs of life’ in October
Nationwide chief economist Robert Gardner said:“Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth and an intensification of Brexit uncertainty.
“To date, the slowdown has largely centred on business investment, while household spending has been more resilient.”
The research also indicated that the upcoming General Election may not have a dramatic effect on the housing market.
““It appears that housing market trends have not traditionally been impacted around the time of general elections,” Gardner added.
“Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.”
David Westgate, chief executive at Andrews Property Group, said today’s data showed that the market “still has some fight in it”.
“A lot of people are fed up with the noise of politics and are getting on with their lives.
“Exceptionally low mortgage rates and more affordable prices are making that decision a bit easier.
“Some sellers are still proving stubborn on price but overall there is a bit more realism than there was earlier in the year.”
Read more: Poll: UK house prices won’t match low inflation until 2021
Patrick Alvarado, director of London estate agent Nicolas Van Patrick, added: “The London housing market is definitely picking up. Over the past three months, we have sold most of our properties, many of which had been sitting on our books for more than a ear, so there is reason to be quietly optimistic.
“Agents tend to be bellwethers for future movements in the market and there is no doubt that we are seeing more buyers get on with it and step into the market, which bodes well for the future.”
However, Howard Archer , chief economic adviser to the EY Item Club, warned not to read too much into the pick up in prices as the UK continues to face Brexit-related political and economic uncertainty.
“House prices can be volatile on a month-to-month basis and we would not read too much into November’s pick-up in prices reported by the Nationwide,” Archer said.
Read more: How London boroughs’ house prices have changed since the last election
“With the economy largely struggling, Brexit uncertainties extended and the UK facing a General Election on 12 December, it seems unlikely that the housing market will see any significant pick-up in the near term at least.
“Consequently, annual house price increases are likely to remain limited to around one per cent in the near term.”
Last week a poll by Reuters found that UK house prices are not expected to match low inflation until 2021 and are set to fall in London this year.
The survey of property experts indicated that house prices in the capital will drop 1.5 per cent this year and will not hold steady until 2020.
Meanwhile, elsewhere in the UK house prices are expected to rise one per cent this year, 1.5 per cent next year and 2.3 per cent in 2021.
Main image credit: Getty