Residential property prices continue to rise in the UK, registering 1.9 per cent annual growth in November 2018. On a month-on-month basis, prices grew by 0.3 per cent last month, according to Nationwide House Price Index.

The average price of a residential unit in the UK was estimated at £214,044 last month. If the uncertainty (Brexit) lifts in the months ahead and employment continues to rise, there is scope for activity to improve through next year, Nationwide said.

The squeeze on household incomes is already moderating and policymakers have signalled that, if the economy performs as they expect, interest rates are only expected to rise at a modest pace and to a limited extent in the years ahead. Looking forward, much will depend on how broader economic conditions evolve, as the Brexit deal is expected to be signed in 2019.

Housing stock is on the rise in the UK and the strongest growth has been in the South West, London and the East of England. These areas have seen relatively strong house price growth over this period, suggesting supply is responding to price signals.

Meanwhile, in regions such as the North East and North West, where house prices are still near 2007 levels, growth in supply has been more modest.