House price growth in the UK slowed “sharply” last month, representing the biggest monthly drop in value since June 2020, according to the latest data.
The average cost of a home has fallen by 1.4 per cent since October – the equivalent of around £4,500, to £263,788, Nationwide’s house price index has revealed.
Across the year to November, house price growth slowed to 4.4 per cent, down from 7.2 per cent in the 12-months to October.
The fallout from September’s disastrous mini-budget has continued to impact the market, Nationwide’s chief economist Robert Gardner said, driving up mortgage rates.
Director of London estate agency Benham and Reeves, Marc von Grundherr, said: “A gradual reduction in the rate of house price growth should be welcomed, as this will help the market steadily return to pre-pandemic norms rather than falling off a cliff edge.
“First time buyers will surely be rubbing their hands.”
Von Grundherr added that Londoners are well-positioned to absorb the slowdown as house price growth in the capital has been more subdued.
Head of sales at estate agency Chestertons, Matthew Thompson, said that London’s market in November had been “fairly active” despite the panic caused by the mini-budget.
“As mortgage rates have settled, buyers have come to terms with higher interest rates and realise that, in the majority of cases, it still makes sense to buy,” said Thompson.
“Compared to November 2021, our branches have experienced a 23 per cent uplift in the number of properties being sold, however, there has been a significant downward trend in market appraisals being carried out. This suggests that, although buyer sentiment is fairly strong, some sellers are still holding off due to economic uncertainty.”