House Prices Edge Up As Hopes Rise Of Lower Mortgage Rates
House prices edged up 0.2% last month amid "encouraging signs" that mortgage rates are starting to come down, the Nationwide has said.
The building society said financial markets estimated interest rates had peaked and would start to come down, easing affordability pressures.
But its chief economist warned it would be unrealistic to expect a big drop in borrowing costs in the near future.
Interest rates set by the Bank of England are at a 15-year high of 5.25%.
The Bank has increased its base rate in an attempt to slow down inflation, which is the rate at which consumer prices rise, and ease the cost of living.
But these higher interest rates have pushed up mortgage rates, making it more expensive for people to afford to buy homes.
While prices have now risen for the past three months, Nationwide said property values in November were 2% lower than at the same point last year.
The average price of a UK home is now £258,557, the lender said.
The average house price remains about £40,000 higher than at the height of Covid when demand in the market led to prices soaring, as people working from home sought more space and took advantage of a stamp duty holiday.