House prices in the UK continued to grow steadily at 0.8 per cent to reach £215,734 in November 2019, according to the latest Nationwide House Price Index.
With uncertainty relating to Brexit slowing down several important sectors of the economy, the property market has been able to maintain its growth momentum. Though growth in house prices is nowhere near the pre-Brexit era, the fact that prices are in the positive territory indicates the strong fundamentals of the UK housing market.
The month-on-month growth in house price was 0.5 per cent, higher than 0.2 per cent registered in October 2019. UK general elections, which are just a few weeks away and the Christmas season, are both likely to further contract the market, as buyers tend to hold back their decision on investing in a new home. Moreover, past general elections do not appear to have generated volatility in house prices or resulted in a significant change in house price trends.
“Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth and an intensification of Brexit uncertainty. To date, the slowdown has largely centred on business investment, while household spending has been more resilient,” Robert Gardner, Nationwide's Chief Economist, said.
This is an appropriate time to invest in the UK residential property market, as prices have moderated while mortgage rates are attractive. Strawberry Star can advise on property investment options in the UK. To book an appointment, call any of our London offices.
Robert Gardner, Nationwide's Chief Economist, said: "Annual house price growth remained below 1% for the 12th month in a row in November, at 0.8%, though this was the strongest outturn since April."