UK house prices rose again in November says Nationwide
Prices 'surprisingly resilient' says lender, but it's down to a lack of supply
BRITAIN may be heading for a double-dip recession but new data shows that UK house prices have been "surprisingly resilient" in recent months.
According to the Nationwide Building Society, the average home rose in value by 0.4 per cent in November to £165,798. The figures are based on the Nationwide’s own mortgage data and suggest that there has been a 1.6 per cent year-on-year increase in house prices.
The building society noted: "Much of the current resilience in house prices reflects the lack of supply on the market at present. Indeed, the pace of building in recent years has fallen well below the pace of household formation – especially in England."
Elsewhere, the BBC reports that Bank of England data shows the number of mortgages approved for house purchase, but not yet completed, has reached its highest level since December 2009. There were 52,743 approvals in October, compared to 51,193 in September.
Despite the apparently encouraging news, economic forecaster Howard Archer at IHS Global Insight told the BBC: "A pick-up in mortgage approvals in October and firmer house prices in November is highly unlikely to herald a significant, sustainable upturn in the housing market's fortunes given largely unfavourable economic fundamentals." ·
