British house prices stagnated in November to drag down the annual rate of increase, the Nationwide building society said today in further evidence the property market remains broadly flat.
The mortgage lender said seasonally adjusted house prices were unchanged after jumping 1.3 per cent in October, suggesting that property prices are moving sideways even amid signs that turnover and demand for mortgages are picking up.
The annual rate of house price inflation slipped back to 2.4 per cent after picking up to 3.3 per cent in October - a rise that both the Nationwide and analysts concluded was temporary.
Since August the Bank of England (BoE) has left rates on hold at 4.5 per cent. Most analysts agree that rates will not move again for several months, although many are divided over whether the next rate move will be up or down.
In the meantime, the housing market is not likely to be as important for interest rates as it has been, as so far the BoE's "soft landing" in housing appears to have been achieved.
"As we expected, the strong rebound in prices in October was temporary, driven by buyers postponing purchases until after the August base rate cut and the overall picture remains one of stability rather than acceleration," said Fionnuala Earley, group economist at Nationwide.
Short sterling interest rate futures climbed a tick or two across the strip after the figures were released.