House prices climbed to another all-time high in November but the pace of growth in property values is continuing to cool, Nationwide Building Society has reported.
Prices across the UK edged up by 0.3 per cent month-on-month on October's previous peak. The average house price in November was £189,388. Typical UK house prices surpassed their 2007 peak in cash terms in May this year, and between then and August they had hit a run of new records, before falling back slightly in September and then recovering to a fresh peak in October.
The year-on-year rise in house prices has been slowing down for three months. The strength of the housing market recovery seen earlier this year, as consumer confidence in the economy increased and mortgage rates remained at cheap levels, took many commentators by surprise.
Robert Gardner, chief economist at Nationwide, said there was now "something of a disconnect" between the recent slowdown in the housing market and the broader economy, which remains upbeat.
He said: "If the economy and the labour market remain in good shape and mortgage rates do not rise sharply, activity is likely to pick up in the quarters ahead."
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