U.K. house prices growth slows to 4.4%

Economy 12/1/2016, 8:01 AM
U.K. house prices growth slows to 4.4%

House prices in the United Kingdom increased 0.1% in November on a monthly basis, but annual price growth slowed to 4.4%, compared with 4.6% in October, according to the Nationwide House Price Index released on Thursday.

"There are some signs that, despite the uncertain economic outlook, demand conditions have strengthened a little in recent months, reflecting the impact of solid labor market conditions and historically low borrowing costs," Nationwide's chief economist Robert Gardner said. However, he added, the relatively low number of houses on the market and modest rates of housing construction will probably keep the balance between demand and supply rather tight in the near term.

Mortgage approvals rose in the month prior, Gardner noted, with fixed rate mortgages remaining the most popular product by type, mostly driven by a desire to lock in record low interest rates in the U.K.

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