According to data from mortgage provider Nationwide, UK house prices unexpectedly rose in November, indicating further stabilization in the property market as high mortgage rates ease.
The house prices increased by 0.2% between October and November, following a 0.9% expansion in the previous month. This data suggests an easing in the housing market after a slide in prices and sales since the summer of 2022.
The Bank of England’s recent figures showed an unexpected three-month high in mortgage approvals in October. The reduction in market expectations for future interest rates could provide support for housing market activity. Despite the recent rise, house prices were still 2% down from November last year, with the average house price at £258,600 in November, down from a peak of £273,500 in August the previous year. The scarcity of properties for sale and strong wage growth are also supporting house prices, potentially aiding a recovery in transactions in the coming months.
Additionally, the Office for National Statistics revised upwards the annual rate of UK rental prices in October from 6.1% to 8.4%, the highest since data collection began in 2016.
The rental demand and prices have been boosted by households unable to afford mortgage payments and landlords passing on higher borrowing costs to tenants.
0 Comments