The Nationwide House Price Index for November 2013 was released today, showing a continued increase in UK house prices.
- UK house prices increased in November 2013 by 0.6%.
- The annual change since November 2012 is 6.5%
- The average price for a UK property is therefore £174,566
- Prices are 6% below the peak of 2007 just before the economy and housing market crashed
The average mortgage rates being provided, for a 2 year fixed period, are also declining with both 90% LTV and 75% LTV mortgage rates the lowest for some considerable time.
Commenting on the figures, Robert Gardner, Nationwides Chief Economist, said:
“UK house prices rose by 0.6% in November taking the annual rate of increase to 6.5% - the strongest pace since July 2010, though prices are still around 6% below the all-time high recorded in late 2007.
“Activity in the housing market has picked up strongly in recent months. The number of mortgage approvals for house purchase reached 66,735 in September, 34% higher than the same period of 2012. A large part of the improvement can be attributed to further improvements in the labour market and the brighter economic outlook, which has helped to bolster sentiment amongst potential buyers.
"Policy measures aimed at keeping down the cost and improving the availability of credit are also playing an important role. Indeed, mortgage rates have declined significantly from the already low levels prevailing last year. For example, Bank of England data indicates that the interest rate on two year fixed rate mortgages for those with a 10% deposit has fallen from 5.6% to 4.4% over the past twelve months. For a buyer purchasing the typical UK home over 25 years, this equates to a reduction in monthly payments of around £110 (£1,320 per year) at the current average house price.”