Nationwide reports house prices only fell 2% in year to November, and rose during the month, as mortgage rates fall
Bloomberg points out that Britain’s housing market has defied forecasts for a sharp correction this year.
One reason is that prices have been buoyed by a lack of properties available for purchase.
The average value is now about 5.6% below where it peaked in August 2022, roughly half the 10% drop expected for this year.
Strength in the housing market is another sign of life in the UK economy, which the Bank of England expects to stagnate through much of the next year. In an effort to tame inflation, the central bank has lifted interest rates from near zero at the end of 2021 to 5.25%, the most since 2008.
These figures confirm what we’ve seen in our offices – the market is still baring its teeth. Despite a 15-year high in base rate and continuing inflation, buyers are showing there is little chance of a correction, although sales are taking longer and prices are softening. Strong employment is also supporting activity.
‘We don’t expect to see much change in the months ahead but a gradual improvement as optimism always seems to become more apparent at the beginning of the year.’
Continue reading…Nationwide reports house prices only fell 2% in year to November, and rose during the month, as mortgage rates fallBloomberg points out that Britain’s housing market has defied forecasts for a sharp correction this year.One reason is that prices have been buoyed by a lack of properties available for purchase.The average value is now about 5.6% below where it peaked in August 2022, roughly half the 10% drop expected for this year.Strength in the housing market is another sign of life in the UK economy, which the Bank of England expects to stagnate through much of the next year. In an effort to tame inflation, the central bank has lifted interest rates from near zero at the end of 2021 to 5.25%, the most since 2008.These figures confirm what we’ve seen in our offices – the market is still baring its teeth. Despite a 15-year high in base rate and continuing inflation, buyers are showing there is little chance of a correction, although sales are taking longer and prices are softening. Strong employment is also supporting activity.‘We don’t expect to see much change in the months ahead but a gradual improvement as optimism always seems to become more apparent at the beginning of the year.’ Continue reading…
