UK house prices rose for a third consecutive month, according to data released by Nationwide on Friday. The average UK price was up 0.2% in November month-on-month, but house prices were down 2% year-on-year.
“Nationwide’s house price index recorded the third successive monthly increase, implying some resilience to the UK property market. While the annual change is still in negative territory, the level narrowed from -3.3% in October to -2% in November,” said Russ Mould, investment director at AJ Bell.
A lack of supply was providing support for house prices as the number of transactions fell. Mortgage rates have fallen, but not to the extent of bringing buyers back into the market in large numbers.
“This looks like a welcome bump for the market, but it’s not quite as positive as it seems. A dearth of homes for sale has put a floor under prices, which rose slightly during November. But life remains tough for sellers,” said Sarah Coles, head of personal finance at Hargreaves Lansdown.
“Prices are on the up for the third successive month, which feels like good news. However, in order to get these higher prices, you have to actually sell your home – which is easier said than done. Sales have slowed to a crawl. October figures out this week from HMRC showed property sales were down a fifth in a year.”