The change in house prices on the same time last year is an increase of 12.8 per cent and the average house price in November was £92,262.
Alex Bannister, group economist at the Nationwide, said: "The housing market has so far shrugged off all the bad news about the global, and increasingly, domestic economies. November saw house prices rise by 0.7 per cent, more than offsetting the 0.5 per cent decline in October. The annual rate of house price inflation remained close to 13 per cent, only slipping back a little because prices rose by nearly 1 per cent this time a year ago. At first glance this is a little surprising. However, the UK economy has yet to slow significantly and despite a modest reduction in consumer confidence following September 11, retail sales and consumer borrowing remain robust. House sales are higher too, with over 140,000 properties (some 14 per cent higher than a year ago) changing hands in October. We still believe consumers will seek to rebuild their finances and exercise greater caution, but this appears to have been pushed back until early next year. A slowdown in the market is therefore still anticipated even if it is a little later in coming. House price growth will slow over the next 6-9 months before staging a modest upturn towards the end of next year."
"The cooling in the upper end of the market may indicate more general trends to come. This is because the top end tends to respond more quickly to bad economic news. In addition, many in the City are now expecting lower bonus payments and this will have been an important factor in the recent softening. For the rest of the market, basic pay growth and changing perceptions of job security are more important drivers. Both earnings and employment prospects are deteriorating as the global slowdown begins to impact. We expect people to reassess their ambitions in the housing market and for house price inflation over the next 6-9 months to reduce."
"Up until the last few months, job losses have been offset by job gains. However, the unemployment rate rose in October for the first time since 1994 and is likely to continue rising. This will vary region by region. Areas with a high dependence on traded goods, such as the North and Midlands, will tend to suffer higher net job losses. In addition, September 11 will mean continuing difficulties for areas reliant on tourism, including London, which has already felt the direct effects on parts of the finance industry. In addition, the outlook for bonuses and the unsustainable pace of growth in the last year or so makes it likely that parts of London will see a significant slowdown next year."
