First-time Buyer  

House price growth slows in November

House price growth slows in November

Annual price growth slowed further in November to 4.4 per cent from 4.6 per cent in October, according to the nation’s biggest building society.

Nationwide’s latest house price index showed house prices increased by 0.1 per cent month on month in November and the average price of a property (not seasonally adjusted) is now £204,947.

Robert Gardner, Nationwide's chief economist, said: “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. 

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“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 fairly tight in the quarters ahead, even if economic conditions weaken, as most forecasters expect.”

Nationwide’s data showed fixed rate mortgages remain most popular 

Over the past 12 months, Nationwide reported 95 per cent of new mortgage lending to first-time buyers was on fixed rates. 

Mr Gardner said: “Borrowers taking out fixed rate mortgages have benefited from historically low interest rates. 

“For example, in October the average two-year fixed rate (for those with a 25 per cent deposit) was 1.51 per cent, over two percentage points below the level prevailing in 2012. 

“Moreover, for borrowers with a 10 per cent deposit, two-year fixed rates are currently the lowest on record, at 2.42 per cent.”

Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: “The housing market is showing remarkable resilience in spite of a few wobbles in confidence post-Brexit. 

“We’re not in the dizzying double-digit percentage increases of mid-2014 but still house price growth, at least for those who have already bought is comfortably creeping up.”

Jonathan Hopper, managing director of Garrington Property Finders, said: “As the Brexit saga morphs into the Brexit boxset, Britain’s property market is settling into business as usual.

“Gone is the unsustainable, double-digit inflation of last year, but price growth remains solid thanks to steady demand and perennially weak supply.”

emma.hughes@ft.com