The latest figures from Nationwide show that UK house prices have seen an unseasonal uplift in November, with the annual rate of growth currently at 1.9% compared to 1.6% this time last year. There has also been a marginal monthly uplift of 0.3% between October and November after monthly growth remained static the previous month.
While this is good news, Nationwide expects the market landscape to remain subdued depending on ‘how broader economic conditions evolve’. Brexit continues to dominate with many still refraining from a sale or purchase until the nation’s uncertain future is decided.
However, there is a degree of confidence returning to the market boosted by low unemployment and the continued affordability of mortgage products. Nationwide also notes that the level of new-build properties entering the market has lifted, now just 3% lower than their pre-crash levels of 2007/2008. The supply of housing available has also been boosted by the number of commercial buildings being converted into residential properties.
The imbalance of buyer demand to the supply available is one of the driving factors behind the continued increase in house prices over the last few years, so an influx of new stock could see prices cool further but would cultivate more natural growth which would benefit the market in the long term.
On the face of it, the UK market remains strong and has defied wider expectations, but with Theresa May’s Brexit deal still under scrutiny, there is always a chance the pendulum could swing the other way.
Business Growth Expert and Yomdel CEO, Andy Soloman, commented:
“An unseasonal surge in market activity has seen price growth, transaction levels and mortgage approvals climb over the winter months. This surprise second wind should see the UK property market finish the year in a much better health than many predicted.
With a thick blanket of Brexit fog still looming over the UK there’s no doubt that the road ahead is a tough one, but once this lifts the resilience of the UK market should shine through and these gloomy forecasts should evaporate.”