Although the prices sit lower than twelve months ago, they only do so by 1.2%; showing that while house price inflation is falling, it is doing so slowly.
Robert Gardner, Nationwide's Chief Economist, said:
"The annual rate of house price inflation remained in negative territory for the ninth month in a row in November. However, the pace of decline remained extremely slow, with prices just 1.2% below the level prevailing in November 2011.
"The predominant theme remains one of stability. Indeed, UK house prices were unchanged over the month in November, after taking account of normal seasonal factors. Moreover, annual price growth has remained in a narrow band between +1.5% and -1.5% on all but two occasions over the past two years."
“The ability of the economy to generate jobs will remain a key determinant of housing market conditions in the period ahead. The fact that the economy is expected to gradually gather pace in the years ahead should provide continued support to employment levels.
“However, the fact that employment is above pre-crisis levels while economic output is still around three percentage points below its 2008 level, suggests that the pace of job creation may not be maintained at its recent rapid pace.
“Similarly, the fact that the unemployment rate remains elevated suggests that competition for jobs will remain intense, maintaining downward pressure on wage growth. This supports our view that house prices are likely to remain broadly flat or decline modestly over the next twelve months."
