For the seventh month in a row, UK property prices have continued to rise with a corresponding improvement in the job market, Nationwide has reported.
November saw an increase in the value of UK house properties by 0.5 per cent compared with the previous month. The average price of a UK property is now ?162,764, which is 2.7 per cent higher than a year ago. This is at a level similar to the house price situation in 2006.
The demands on mortgage lenders? deposits are lightening, according to separate figures. According to the Nationwide, there has been a slowing down on the rate of increase from 3.5 per cent in October to 2.8 per cent in November, as reported by BBC News.
Nationwide chief economist Martin Gahbauer said: ?This suggests that house prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows.?
Mr Gahbauer cited the improvement in unemployment figure as a key factor in the surprisingly steady rise in prices during the recession. He added that the outlook for the housing market relies on the condition of the labour market and that recent improvements have been ?more encouraging than might have been expected?.
This is partly due to the fact that employers have taken the route of reducing pay and working hours as an alternative to making people redundant. At least, he said, workers are given the opportunity to work part time rather than lose their jobs completely.
The improvement in the employment situation, together with low mortgage rates, has meant that fewer people have had to sell their properties and as a result house prices have continued to remain steady.
