The Nationwide House Price Index showed that house prices rose by 0.3% month-on-month in November compared to growth of 0.5% in October. Annually the pace of growth slowed from 9% in October 8.5% in November.
The average house price remained fairly static at around £189,000.
Robert Gardner, Nationwide’s chief economist, said: “Housing market activity levels have remained relatively weak in recent months. The number of mortgages approved for house purchase in September was almost 20% below the level prevailing at the start of the year and 27% below the long-term average.
“Similarly, housing market turnover rates are well below long-term averages. For example, the number of mortgage transactions is currently equal to around 4% of the housing stock1 – well below the long-run average of 6%.”
Bank of England statistics revealed that mortgage approvals in September at their lowest level since July 2013. September approvals were 4% lower than August falling from 64,054 to 61,267.
The British Bankers’ Association reported a more dismal outlook for bank mortgage approvals in October. Its data for house purchase approvals revealed a 16% drop compared to October 2013 bringing the number of new homeloans agreed to 42,830.
Housing market statistics released today by the Land Registry showed a similar picture for October. The rate of house price growth was 0.1% while the average house price was £177,377. Annually the pace of growth was 7.7%.
The number of property transactions has increased over the last year. From May 2013 to August 2013 there was an average of 71,463 sales per month. In the same month a year later, the figure was 80,596.
The Land Registry’s London data showed a monthly increase of 0.7% and an 18.6% annual change, considerably higher than other regions. The average price of property in the capital is £460,060.
Gardner added: “Forward looking indicators, such as new buyer enquiries point to further softness in the near-term. However, if the economy and the labour market remain in good shape and mortgage rates do not rise sharply, activity is likely to pick up in the quarters ahead.”
