Derin Clark

Derin Clark

Online Reporter
Published: 28/11/2019

The latest Nationwide House Price Index data shows that in November, while house prices have continued to grow, the growth remains slow.

In November, house prices have grown by just 0.3% month-on-month (0.5% on a seasonally adjusted basis) and by just 0.8% year-on-year. According to the report, the average house price stood at £215,734 in the month.

Commenting on the latest house price figures, Robert Gardner, chief economist at Nationwide, said: “Annual house price growth remained below 1% for the twelfth month in a row in November, at 0.8%, though this was the strongest outturn since April.

“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.”

Looking ahead to see if the current political climate would impact house prices, Gardner added: “It appears that housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.”

Mortgage rates remain competitive

While house prices growth has remained slow, mortgage rate competition has continued to intensify. Earlier this week, we reported that 10 year fixed rate mortgages have seen average rates fall from 3.08% in November 2018 to 2.76% today. It is not just those looking to fix their mortgage into a long-term deal who can benefit from low rates at the moment, as rates within the first-time buyer chart remain highly competitive. The lowest fixed rate currently available in the first-time buyer chart without income or location opening restrictions comes from Newcastle Building Society, which is offering a rate of 2.59% fixed until 28 February 2022. First-time buyers looking to lock their rate into a five-year term can get a deal from as low as 2.75%, which is being offered by Barclays Mortgage and the rate remains fixed until 31 January 2025.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

for sale sign outside residential house

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