Latest index shows pace of annual house price growth slowing for third consecutive month.
House price growth is continuing to slow, according to the latest Nationwide house price index.
The building society says UK house prices rose by just 0.3% in November, meaning the annual rate of growth slowed to 8.5%, from 9% in October.
This is the third consecutive month annual house price growth has fallen.
Nationwide says the average UK home is now worth £189,388.
Price changes
Here’s how prices have changed over the last 12 months, according to Nationwide’s Index.
|
|
Monthly change % (seasonally adjusted) |
Quarterly % change |
Annual % change |
Average price |
|
October 2013 |
1.0% |
2.6% |
5.8% |
£173,678 |
|
November 2013 |
0.8% |
2.9% |
6.5% |
£174,566 |
|
December 2013 |
1.5% |
3.0% |
8.4% |
£175,826 |
|
January 2014 |
0.9% |
3.1% |
8.8% |
£176,491 |
|
February 2014 |
0.7% |
3.2% |
9.4% |
£177,846 |
|
March 2014 |
0.5% |
2.8% |
9.5% |
£180,264 |
|
April 2014 |
1.2% |
2.6% |
10.9% |
£183,577 |
|
May 2014 |
0.7% |
2.4% |
11.1% |
£186,512 |
|
June 2014 |
1.0% |
2.6% |
11.8% |
£188,903 |
|
July 2014 |
0.2% |
2.4% |
10.6% |
£188,949 |
|
August 2014 |
0.8% |
2.3% |
11.0% |
£189,306 |
|
September 2014 |
-0.2% |
1.6% |
9.4% |
£188,374 |
|
October 2014 |
0.5% |
1.3% |
9.0% |
£189,333 |
|
November 2014 |
0.3% |
0.9% |
8.5% |
£189,388 |
Why is this happening?
[SPOTLIGHT]Nationwide says there could be a number of factors at play.
It points to the number of mortgages approved in September falling to almost 20% below the level seen at the start of the year and 27% below the long-term average.
The building society also highlighted below average sale rates and new buyer enquiries.
That said, the broader economic picture is positive, with unemployment falling and consumer confidence rising.
Nationwide predicts activity is likely to pick up in the months ahead, so long as these economic conditions continue and mortgage rates remain level.
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