Property News

Annual house price growth remains subdued in November

Em Morley - November 29, 2019

Nationwide’s House Price Index for November 2019 has been released, highlighting that house price growth has been marginally higher.

The report states:

  • Annual house price growth remained subdued at 0.8% 
  • 0.5% rise month-on-month, after taking account of seasonal factors

Robert Gardner, Nationwide’s Chief Economist, comments: “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. 

“To date, the slowdown has largely centred on business investment, while household spending has been more resilient.”

Gardner also shares his thoughts on the impact the election might have on the housing market within the report: “With the UK general election due in a few week’s time, we have analysed house price movements in the months around previous elections, and also the 2016 EU referendum. 

“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.” 

David Westgate, Group Chief Executive at Andrews Property Group, has also commented: “On an annual basis, prices remain below 1% but growth of 0.5% in November shows the market still has some fight in it.

“Increasingly, it feels like the market is starting to find a bit of a rhythm, and a strong majority for the Conservatives could add even more momentum.

“A lot of people are fed up with the noise of politics and are getting on with their lives. Exceptionally low mortgage rates and more affordable prices are making that decision a bit easier. 

“Some sellers are still proving stubborn on price but overall there is a bit more realism than there was earlier in the year.

“The one thing that’s still thin on the ground, perhaps no surprise in the current climate, is the aspirational mover. 

“A decisive win for Boris Johnson could see the market rebound sharply, but if we end up with more political deadlock the market could continue to idle along for another year.”