United Kingdom: Housing prices remain flat in November
November 29, 2012
In November, the price of a typical U.K. home was unchanged over the preceding month in seasonally adjusted terms, according to data published by the Nationwide Building Society (NBS). The reading came in below the 0.6% rise seen in October but was only a notch below market expectations of a 0.1% increase. In annual terms, housing prices dropped 1.2%, which came in below the 0.9% decline observed in October. Nationwide noted that sustained employment levels along with "ultra low interest rates" have contributed in preventing the stock of unsold homes to rise and excerpt downward pressure on housing prices. However, the NBS highlighted that "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".