This means that house prices are now around 6% below the 2007 peak.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:
“UK house prices rose by 0.6% in November taking the annual rate of increase to 6.5% - the strongest pace since July 2010, though prices are still around 6% below the all-time high recorded in late 2007.
“Activity in the housing market has picked up strongly in recent months. The number of mortgage approvals for house purchase reached 66,735 in September, 34% higher than the same period of 2012. A large part of the improvement can be attributed to further improvements in the labour market and the brighter economic outlook, which has helped to bolster sentiment amongst potential buyers.
“Policy measures aimed at keeping down the cost and improving the availability of credit are also playing an important role. Indeed, mortgage rates have declined significantly from the already low levels prevailing last year. For example, Bank of England data indicates that the interest rate on two year fixed rate mortgages for those with a 10% deposit has fallen from 5.6% to 4.4% over the past twelve months. For a buyer purchasing the typical UK home over 25 years, this equates to a reduction in monthly payments of around £110 (£1,320 per year) at the current average house price.”
Ben Thompson, MD, Legal & General Mortgage Club, said:
“Consistent house price rises are now being recorded across the country and not just in London and the South East. Stable increases in line with inflation and wages is good news if the supply of housing also increases to meet demand. However, at the moment we have quite a significant shortfall in new homes being built and that needs to be addressed.
For those homeowners that have been unable to move to larger properties due to adverse market conditions in recent times the news that prices are rising may well be good news. With increasing prices the equity in their homes is also increasing. For those that have been put off moving now may be time to seek advice as they may be pleasantly surprised at what you might be able to achieve.”
