House prices growth slows down in November, says Nationwide
The pace at which house prices grow slowed for a third consecutive month in November, according to Nationwide.
The average UK house price rose 0.3% to £189,388 in November, with the annualised growth rate falling to 8.5% from 9% in October.
According to the index, the number of mortgage approvals also fell during the period, with the number of mortgages approved for house purchase in September 27% below the long-term average and almost a 20% lower than it was the beginning of the year.
“There is something of a disconnection between the slowdown in the housing market in recent months and broader economic indicators, which have remained relatively upbeat," said Robert Gardner, chief economist at Nationwide.
"While cooling in the London market is a part of the story, this is unlikely to be main explanation for the slowdown."
Gardner added that the cool-down in the property market was not due to affordability and that he expected the market to pick up again over the beginning of 2015.
“Forward looking indicators, such as new buyer enquiries point to further softness in the near-term,” he said.
“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.”