Last month saw an unexpected increase in house prices as the mortgage market grew more accessible, revealed a closely monitored survey.
There was a 0.2pc rise in property values from October to November, following an unforeseen 0.9pc jump in the previous month, as per the Nationwide house price index.
Contrary to analyst predictions of a 0.4pc decrease in November, the annual decline in house prices slowed down from 3.3pc to 2pc. However, this marks the tenth consecutive month of decline.
Since the start of the series of annual decreases in February, the average house price now stands at £258,557.
Robert Gardner, Nationwide’s chief economist, attributed these changes to a more favourable forecast for interest rates next year.
He explained, “These shifts are significant as they have resulted in a drop in the longer-term interest rates (swap rates) that form the basis for fixed-rate mortgage pricing.
“If this trend continues, it could alleviate the affordability challenges that have been dampening housing market activity lately, where the number of mortgage approvals for house purchases has been about 30pc lower than pre-pandemic levels.”
