House prices in the UK were unchanged in November according to Nationwide, as the property market remains sluggish.
Annual growth is 2.4%, with the average price of a house at GBP157,139. The building society that conducted the study said the results point toward overall market stability, with small rises in some months and small falls in others. The growth is considerably less than this time last year, when house price inflation was 15%.
Commenting on the figures, Fionnuala Earley, Nationwide’s group economist, said: Encouragingly, forward indicators continue to suggest that confidence in the market remains. Estate agents are reporting increasing buyer interest and that buyers and sellers are reaching agreement on prices more readily. This reflects an overall picture of stability rather than acceleration.
Ms Earley added that crucially for the housing market, unemployment is still low, and earnings are growing steadily, making large numbers of forced sales resulting from defaults unlikely.
Home ownership will become more affordable over time if earnings grow faster than house prices, Ms Earley said.