• Prior +0.9%
  • House prices -2.0% vs -2.3% y/y expected
  • Prior -3.3%

Even with the improvement in the house price index on the month, the average price of dwellings in the UK declined from £259,423 in October to £258,557 in November. Annual house price growth remains weak but is the highest since February this year at least. Nationwide notes that:

"There has been a significant change in market expectations for the future path of Bank Rate in recent months which, if sustained, could provide much needed support for housing market activity. In mid-August, investors had expected the Bank of England to raise rates to a peak of around 6% and lower them only modestly (to c.4%) over the next five years. By the end of November, this had shifted to a view that rates have now peaked (at 5.25%) and that they will be lowered to around 3.5% in the years ahead."