UK HOUSE PRICES SUPRISINGLY RESILIENT
UK house prices surprisingly resilient, Nationwide says
The house price survey is based on the Nationwide's mortgage data Continue reading the main story
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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 rose by 0.4% in November to £165,798.
This was a 1.6% year-on-year increase, according to the figures based on Nationwide's own mortgage data.
This contrasts with figures from the Land Registry which showed that prices in England and Wales had slipped slightly in the past year.
The Nationwide predicted that prices would stay the same or fall in the next 12 months.
"House prices have remained surprisingly resilient in recent months, despite the deterioration in the economic outlook," said Robert Gardner, the Nationwide's chief economist.
"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."
Homes on the market
The best measure of current trends in house prices is to compare the average price of the past three months with the average price of the previous three months.
On the Nationwide's data this three-month on three-month comparison shows a rise of 0.2%.
Mr Gardner said the apparent resilience of house prices 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.