Annually the pace of house price growth slowed to 3.7% in November, down from 3.9% in October.
The average house price now stand at £196,305.
Robert Gardner, chief economist, Nationwide, said the annual rate of house price growth has fluctuated in a ‘fairly narrow range’ between 3% and 4% over the past six months, keeping consistent with earnings growth over the longer term.
“While this bodes for a sustainable increase in housing market activity in the period ahead, much will depend on whether building activity can keep pace with increasing demand,” he said.
Surveyors have continued to report a shortage of properties on the market in recent month, with the lowest level since the late 1970s, he said, adding that it was ‘positive’ that policy makers are focusing on the need to increase home building.
“The current rate of construction activity is well below the projected rate of household formation,” added Gardner.
“Only 135,000 new homes were built in England in the 12 months to September 2015, well below the circa 200,000 new households that are projected to form each year over the next decade.”
In his Autumn Statement and Spending Review, the Chancellor presented the ‘biggest affordable housebuilding programme since the 1970s’, pledging almost £7bn to build more than 400,000 affordable homes.