Housing market 'treading water'

Property prices underwent a modest recovery in November, rising by one per cent over the month, according to the latest housing market survey.

14:58 30 November 2004

Property prices underwent a modest recovery in November, rising by one per cent over the month, according to the latest housing market survey.

However, the Nationwide poll also found that housing market activity is at its lowest for almost five years.

Annual price inflation in November fell to 15 per cent from 15.3 per cent in October, with the average price of a property equalling 153,439.

Commenting on the figures, Alex Bannister, Nationwide's group economist, said: "Following a three month period in which house prices have been broadly flat, the price of the typical house rose one per cent [seasonally adjusted] in November.

"At the same time as price growth has become more subdued, activity levels have fallen back to their lowest level for almost five years."

Figures released by the Bank of England show that just 83,000 (seasonally adjusted) mortgages were approved in October, the lowest level since January 2000.

Mr Bannister added that while house price growth continues to slow, the most important aspect of the slowdown so far is that it has "been an orderly one".

"Despite November's one per cent increase in property prices the recent trend in house price growth remains muted," he concluded.