UK Property Prices Rise in November
UK Property Prices Rise in November and are continuing to show resilience since the ‘Brexit’ vote. The latest index figures showing a 0.1% price rise in November. Year on year price growth is down to 4.4% from 4.6% in October. Therefore taking the average price of a home to £204,947, per the index from lender Nationwide.
Property Growth Continuing Trend
David Gardner, Nationwide chief economist said that growth is still in-line with the current upward price trend since early 2015. ‘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,’ he said. ‘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 tight moving forward. Even if economic conditions weaken. CEO of HouseSimple, Alex Gosling, points out that the UK property market is in surprisingly good health. ‘When you factor in the seasonal slowdown normally expected this time of the year, there’s nothing alarming in these figures. If anything, the market actually picked up in November. We saw a higher level of buyer activity than we would normally see at this time of year,’ he explained.
Price Reslience Expected to Continue
Rob Weaver, director of investments at property crowdfunding platform Property Partner, thinks the housing market is showing remarkable resilience in spite of a few wobbles in confidence post-Brexit. ‘Interestingly, the real certainty in uncertain times is the undeniable dearth in not only current available stock for sale but also longer term housing supply in the UK; which is acting as a buttress for prices. Combined with cheap borrowing rates and continuing high employment, house prices particularly in London and the South East are only heading one way in the mid to long term and that’s up,’ he added. He pointed out that in the past two years UK home owners have seen their homes increase on average by more than £15,500. Therefore reflecting a rising market that looks unlikely to change anytime soon.