01 December 2023
If you are covering Nationwide’s latest house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The latest UK house price figures paints a picture of a market cautiously tiptoeing towards some semblance of stability. November's 0.2% bump in house prices, according to Nationwide, is a small but significant signal of recovery in a year that has seen a 2% dip compared to its predecessor. This slight uptick on the meteorological first day of winter is like a green shoot of recovery for the housing market hinting at potential growth amidst challenging conditions.
“Data from the Bank of England earlier this week showed that mortgage approvals, too, are inching upwards, with October witnessing a climb to 47,400 from September's 43,300. This also shows signs of life in a market that's been under the weight of economic uncertainty and high interest rates.
“Yet, the broader picture remains one of caution. The staggering 21% year-on-year fall in residential transactions, also released this week, muddies the picture and echoes the market's hesitation. It's a clear sign that many are still waiting for a more favourable wind in terms of house prices and mortgage costs.
“Limited housing stock and high rental costs are nudging people towards buying, yet the high cost of mortgages and economic uncertainties are weighing heavy on budgets holding back a full-scale market revival.
“The balance of recovery will hinge on how interest rates and the broader economic picture evolve in the coming months.”
