- Annual gain slows to 3.7% in November from 3.9% in October
- Houses for sale at lowest level since the 1970s, lender says
U.K. house-price growth slowed to a five-month low in November, according to Nationwide Building Society, which also noted a shortage of properties for sale.
The average price of a home rose 0.1 percent to 196,305 pounds ($296,283), the slowest pace since June, following a revised 0.5 percent gain in October, the lender said in a statement on Friday. The annual rate of growth cooled to 3.7 percent from 3.9 percent.
Real-estate reports this year have pointed to a growing supply problem in Britain’s housing market, which is pushing up prices and making it harder for first-time buyers. However, the annual rate of increases has remained between 3 percent and 4 percent over the past six months, which is broadly consistent with Britons’ earnings growth over the longer term, Nationwide said.
“While this bodes well for a sustainable increase in housing-market activity in the period ahead, much will depend on whether building activity can keep pace with increasing demand,” Nationwide Chief Economist Robert Gardner said in the statement. “Surveyors have continued to report a dearth of properties on the market in recent months, with the number of available homes reportedly at the lowest level since the late 1970s.”