Property prices in the UK fell in line with seasonal expectation in November, according to the latest index from property portal Rightmove.
Prices fell by 2.1 per cent (£6,511) compared to the previous month, with the index reporting this to be “exactly in line with the average over the last six years”, and so as expected.
However, the strength of buyer activity was noted, with sales in November 2016 up 5.2 per cent on the same month last year.
Rightmove director and housing market analyst Miles Shipside says: “For the housing market the uncertain outlook has meant a head and heart tug of war between ‘stay put’ and ‘carry on moving’. After a pause the mass-market seems to have opted firmly for the latter in most parts of the country.”
The report predicts ‘modest’ house price growth of 2 per cent nationally in 2017 and forecasts that prices in inner London will ‘remain weak’ and fall by 5 per cent. The expectation for outer London is a house price rise of 3 per cent next year.
Shipside says: “The price of property coming to market in 2016 is currently up by 3.4 per cent compared to a year ago, so while a forecast rise of 2 per cent in 2017 is a lessening of the pace, it would still be the seventh consecutive year of rising property prices.”
Legal & General Mortgage Club director Jeremy Duncombe says: “November’s figures are following the trend set by the previous month by showing a slight decrease in house price inflation.
“The problem – as ever – is that wage inflation is continually being outstripped by house price inflation. Until we realign these two fundamental elements of the market, first time buyers will continue to struggle to get on the housing ladder. With the promised Housing White Paper due at the start of the New Year, it is time for the Government to start tackling the structural problems in the housing market.”