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LONDON, Dec 1 (Reuters) – British house prices fell 1.4% in November compared with October, the biggest monthly drop since June 2020 and a clear sign the housing market is cooling rapidly, data from mortgage lender Nationwide showed on Thursday.
A Reuters poll of economists pointed to a 0.3% decline, following a 0.9% decline in October.
In annual terms, house price growth slowed to 4.4% in November from 7.2% in October, Nationwide said.
Other measures of house prices have also pointed to a slowdown.
Nationwide said the fallout from former prime minister Liz Truce’s September economic agenda – which triggered a collapse in British financial assets, amplified by the structure of the pension industry – continued to reverberate through the housing market.
“While financial market conditions have stabilized, interest rates for new mortgages remain high and the market has lost significant momentum,” said Robert Gardner, chief economist at Nationwide.
He said the market is likely to slow in the coming quarters, although a “relatively soft landing” is possible due to the strength of the labor market and the weak supply of homes coming on the market.
A Reuters poll of economists and property market analysts last week predicted house prices would fall by around 5% next year, after rising around 24% since the start of 2020, according to official data.
Reported by Andy Bruce; Editing by Kate Holton
Our Standards: The Thomson Reuters Trust Principles.
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