Britain’s house prices rose 0.2 percent in November, according to Nationwide’s latest House Price Index.
Annual house price growth remains weak but is the strongest it has been since February, 2023.
This was the third successive monthly increase and resulted in an improvement in the annual rate of house price growth from -3.3 percent in October, to -2.0 percent.
Despite the slight rise this month, house prices are still down two percent compared with a year ago, meaning challenges remain for the market as 2023 draws to a close.
This time last year, the average UK house price was £295,000 in November 2022. They had increased by 10.3 percent in the year to November 2022, down from 12.4 percent in October 2022.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “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.
“In mid-August, investors had expected the Bank of England to raise rates to a peak of around six percent and lower them only modestly (to c.four percent) over the next five years.
“By the end of November, this had shifted to a view that rates have now peaked (at 5.25 percent) and that they will be lowered to around 3.5 percent in the years ahead.
“These shifts are important as they have led to a decline in the longer-term interest rates (swap rates) that underpin fixed rate mortgage pricing, as shown below.
“If sustained, this will help to ease the affordability pressures that have been stifling housing market activity in recent quarters, where the number of mortgage approvals for house purchases has been running at c.30 percent below pre-pandemic levels.
