UK House prices Edge up further

The average house price in the UK increased by a small 0.4% in November. However in does continue the gradual increase in prices seen by Nationwide recently.

Further the typical home is now 1.6% higher than 1 year ago, with an average house price of £165,798.

Commenting on the figures, Robert Gardner,

Nationwides Chief Economist, said:

“House prices have remained surprisingly resilient in recent months, despite the deterioration in the economic outlook. But, with the UK economic recovery expected to remain sluggish well into 2012, house price growth is likely to remain soft, with prices moving sideways or drifting modestly lower over the next twelve months.”

Resilient Property Market

It would seem that the demand for property in the UK still remains subdued, and is in fact reducing over the past few month.

“… many of the factors that underpin the demand for homes have deteriorated further in recent months. For example, the UK economy lost  almost 200,000 jobs in the three months to September – similar to the pace of job losses seen during the depths of the 2008 recession. At the same time, wage growth slowed to 1.7% - less than half the pace of inflation over the same period.”

In this is contrast to the small but significant rises in house prices.

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