Skip to Main Content
Annual house price growth slows in November

Annual house price growth slows in November

The pace of annual house price growth has slowed to its lowest rate since January, according to the latest figures from the Nationwide House Price Index.

In the year to November, house prices rose by 4.4% compared to 4.6% in the year to October.

On a monthly basis, house prices were up 0.1% in November, with the price of an average home costing £204,947.

Robert Gardner, Nationwide’s chief economist said:

“There are some signs that, despite the uncertain economic outlook, demand conditions have strengthened a little in recent months, reflecting the impact of solid labour market conditions and historically low borrowing costs.

“Mortgage approvals increased in October, and surveyors report that new buyer enquiries have increased modestly.

“The relatively low number of homes on the market and modest rates of housing construction are likely to keep the demand/supply balance fairly tight in the quarters ahead, even if economic conditions weaken, as most forecasters expect.”

According to Adrian Gill, executive director of Your Move & Reeds Rains, the fact that house price growth has slowed should not be cause for concern for the market.

“This period of calm represents a fantastic opportunity for those looking to get a foot onto the property ladder.

“With so many lenders now offering record low mortgage rates, there has never been a better time to buy.”

Robert Gardner highlighted the fact that fixed rate mortgages have remained the most popular product type by a considerable margin in recent years.

According to the Council of Mortgage Lenders over 90% of new mortgages were contracted on fixed rates over the past twelve months. This may be driven by a desire to lock in record low interest rates, Gardner said.

“Fixed rate deals are most popular amongst first time buyers for whom certainty over monthly payments is likely to be particularly important.Indeed, over the past twelve months 95% of new mortgage lending to first time buyers was on fixed rates”.


Newsletter sign up - News and blogs.jpg


You may also be interested in:

Autumn Statement confirms launch of £2.3bn Housing Infrastructure Fund
Chancellor Philip Hammond has announced the launch of a £2.3bn housing infrastructure fund as part of his Autumn Statement and has hiked the profit forecasts for the Stamp Duty Land Tax surcharge by 81% to £7bn, while banning letting agent fees for tenants.

5 buy to let mortgages with generous rent to interest calculations
Buy to let mortgages with generous Rent to Interest calculations are disappearing fast. Come 1 January 2017 lenders will be required to RTIs for landlords borrowing personally. Jeni explains why and reveals some buy to let mortgages rates which have a more generous cover ratio.

How the restriction of relief on BTL mortgage interest will affect landlords
Simon Whittaker, Finance Director analyses and examples of how the restriction of relief on buy to let mortgage interest will affect landlords.

More lenders change their rental cover requirements
Mainstream lender, Santander, announced that it is moving its rental coverage requirements upwards in response to forthcoming affordability assessment changes required by the Prudential Regulation Authority.