UK house prices on the up as demand increases in rental sector

UK house prices on the up as demand increases in rental sector

UK house prices have remained “surprisingly resilient” in recent months, with values rising again in November, the Nationwide has said.

The building society said house prices increased by 0.4% in November compared with the previous month.

This was a 1.6% year-on-year increase, according to the figures based on Nationwide’s own mortgage data.

However, it predicted that prices would stay the same or fall in the next 12 months.

There was a 0.2% rise in prices in the three months to the end of November compared with the previous quarter, with the average home now valued at £165,798, the data showed.

This was in contrast to figures from the Land Registry, published on Monday, which suggested that prices in the UK had slipped slightly compared with a year ago.

Demand and housing market activity remained low, so Robert Gardner, Nationwide’s chief economist, suggested that – given the deterioration in economic outlook – the “resilience” reflected a lack of supply in the market.

He welcomed the latest announcement from the government on encouraging first-time buyer activity, but said that any action should also include measures to increase housing supply.

The government’s housing strategy, announced earlier in the month, included a mortgage guarantee scheme to encourage lenders to offer 95% mortgages to buyers of new homes.

The news comes at a time when the UK’s rental property market is reported to be in much demand.

The National Landlords Association’s (NLA) annual National Conference in Manchester heard that it is an exciting time for the private rented sector as demand grows.

Keynote speaker Terrie Alafat, director of housing growth and affordable housing at Communities and Local Government (CLG), told the conference that housing is definitely at the top of the government’s agenda and the private rented sector is in the middle of all of that.

‘We know that demand is continuing to grow and the sector has responded to that, expanding to house about 3.4 million households in England, which is an increase of one million since 2005,’ he said.

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