Nationwide House Price Index: House price growth slides to 11-month low in November

Jessica Morris
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House prices rose 8.5 per cent in the year to November. (Source: Getty)

House price growth slid to an 11-month low in November as the British housing market continued to cool, according figures released by Nationwide today.

The Nationwide House Price Index showed house prices rose 8.5 per cent in the year to November, taking growth to an 11-month low.

Price growth for the three months to September slowed to 0.9 per cent from 1.3 per cent a year earlier.

It suggests the government's measures to curb what many believed to be Britain's overheating housing market are taking effect.

Robert Gardner, Nationwide's chief economist pointed to a disconnect between the UK economy and the nation's housing market:

The labour market has continued to improve, with employment rising strongly and the unemployment rate falling sharply in recent months.

Moreover, indicators of consumer sentiment remains elevated, where healthy rates of retail sales growth and new car registrations also suggest that households are feeling more confident.

Forward looking indicators, such as new buyer enquiries point to further softness in the near-term. However, if the economy and the labour market remain in good shape and mortgage rates do not rise sharply, activity is likely to pick up in the quarters ahead.

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