House prices rose by 2.5 per cent over the past year, Nationwide reported today, as the property market steadied itself at a lower rate of growth.
Britain's biggest building society said low mortgage rates and healthy employment were supporting the market - and it expected the Budget stamp duty cut for first-time buyers to give it a slight boost - although the average house price dipped £1,097 in November to £209,988. It welcomed Budget measures to increase the supply of housing and said that Britain still was not building enough, but flagged an emerging trend that is adding to homes available - with more offices being turned into homes. Despite the average price actually falling, Nationwide said the average UK home rose by 0.1 per cent in November, after seasonal adjustment - a statistical manipulation designed to enable slow sales months to be fairly measured against busier ones.
House price inflation stuck at 2.5 per cent - the same rate as October - with the average property just over £5,000 more expensive than a year ago. Nationwide highlighted how much money first-time buyers would save from the Budget abolishing it for them up to £300,000. It said that previously 100 per cent of London buyers would have paid stamp duty and now 81 per cent would pay some but considerably less at an average of £9m778 compared to £13,102 previously. That contrasted with the North where 47 per cent of first-time buyers previously paid stamp duty and now just 2 per cent will, although the average bill dropped from just £639 to £100.
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