Annual house price growth ‘below 1% for 12th consecutive month’ in November

Annual house price growth has remained below 1% for 12 months in a row, according to an index.

Across the UK, house prices were 0.8% higher in November than a year earlier, Nationwide Building Society said.

Property values have grown by less than 1% annually every month since December 2018.

However, November’s annual increase is the strongest in seven months, with house prices having grown by just 0.4% annually in October.

House prices also increased by 0.5% month on month in November, taking the average property value to £215,734.

Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth remained below 1% for the 12th 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.”

With the General Election approaching, Mr Gardner said past polls do not appear to have resulted in a significant change in house price trends.

Mr Gardner said: “On the whole, prevailing trends have been maintained just before, during and after UK general elections.

“Broader economic trends appear to dominate any immediate election-related impacts…

“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.”

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: “The housing market remains largely on hold but still relatively resilient, underpinned by near-record low mortgage rates, strong household spending and shortage of stock outweighing political and economic uncertainty.

“At the sharp end, pent-up demand can remain so only for so long as realistic buyers and sellers prepare for life beyond the election and cautiously check on value before deciding to move.”

Patrick Alvarado, director of central London estate agent Nicolas Van Patrick, said: “The London housing market is definitely picking up.

“Over the past three months, we have sold most of our properties, many of which had been sitting on our books for more than a year, so there is reason to be quietly optimistic.”