Average house prices take a hit

The average house price fell by 1.4% month on month in November, marking the biggest drop since June 2020, according to latest figures.

This followed a 0.9% monthon-month fall in October.

Across the UK, annual house price growth slowed sharply to 4.4%, from 7.2% annual growth recorded in October. The average house price in November was £263,788, according to Nationwide Building Society.

Mortgage rates jumped following the mini-budget in September, with Bank of England base rate rises also pushing up borrowing costs, against a backdrop of households being squeezed by rising bills generally.

“Interest rates for new mortgages remain elevated and the market has lost a significant degree of momentum,” says Robert Gardner, Nationwide’s chief economist.

He added: “The outlook is uncertain, and much will depend on how the broader economy performs, but a relatively soft landing is still possible.”