A slight uptick was witnessed in the annual house price growth in November, but the market is still subdued. Prices were 1.9 per cent higher than 1 year ago, up from 1.6 percent in October, which was a 5-year low.
The chief economist of Nationwide, Robert Gardner said that future trends depend on how the wider economic conditions evolve. In the short run, the uncertain economic outlook and the squeezing of household budgets will probably dampen demand even though unemployment is close to 40-year lows and borrowing costs are still low.
If employment continues rising and uncertainty lifts in the coming months, it is likely that activity will pick up through next year. The squeeze on household incomes has started to moderate and policymakers have indicated that interest rates will only rise at a moderate pace to a limited extent in the coming years, but only if the economy performs … Read the rest