Nationwide: house price growth slows again in November

House price growth slowed for the third consecutive month in November, according to a closely-watched index compiled by Natiowide.

The average UK house price edged up 0.3pc to £189,388 in November, bringing the annualised growth rate to 8.5pc, down from 9pc in October.

Robert Gardner, chief economist at Nationwide, said that mortgage approvals had also dropped. He said the number of mortgages approved for house purchase in September was nearly a fifth lower than at the start of the year and 27pc below the long-term average.

Mr Gardner added that the housing market cool-down was at odds with trends in the wider economy.

“There is something of a disconnect between the slowdown in the housing market in recent months and broader economic indicators, which have remained relatively upbeat," he said. "While cooling in the London market is a part of the story, this is unlikely to be main explanation for the slowdown."

Mr Gardner said the cool-down was not due to affordability, which he said "does not appear overly stretched" since first-time buyers represented an unusually high proportion of mortage activity.
He expected the market to pick up again in the next few months.
“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," he said.

^{The annual rate of house price growth is coming off the peaks seen earlier this year. Source: Nationwide}
This news comes as the Land Registry releases its monthly house price data.
The figures, the most accurate of all property indicies, are a month behind Nationwide's and show that the average house price in England and Wales hit £177,377 in October, compared with the peak of £181,269 in November 2007
It recorded annual growth of 7.7pc last month and house prices were up 0.1pc on September.

http://www.telegraph.co.uk/finance/personalfinance/houseprices/11259665/Nationwide-house-price-growth-slows-again-in-November.html