November 2014 House Price Watch

This month's House Price Watch indicates house prices are up on average 0.4% in the past month and up on average 9.1% in the past year

Nov 2014 House Price Watch Index chart

Pace of house price growth slows as buyers become more cautious

 

While the market is still active, there are signs the market is slowing

  • Nationwide indicate that the number of mortgages approved for house purchase in September was 20% below the level at the start of the year and new buyer enquiries continued to fall in September.
  • Buyers are becoming more cautious with higher house prices, interest rate rises expected in 2015 and tougher mortgage affordability checks and maximum loan to income caps now in place.
  • Alongside falling buyer enquiries, Rightmove data indicates that new seller numbers are up 10% compared with October last year which is giving buyers more choice and negotiating power which is further helping to keep house prices in check.

Buyers and particularly first-time buyers seek greater certainty over monthly payments by taking out fixed rate mortgages

  • 90% of new mortgages and 95% of new mortgage lending to first-time buyers are fixed rates according to recent CML data.  Nationwide report fixed rates are very attractive for borrowers at the moment “The average two year fix for those with a 25% deposit is currently 2.46% and for borrowers with a 10% deposit, the rates available for two year fixes are the lowest on record.”

All indices chart_Nov 2014

 

Regional Summary – The tide is turning noticeably in London

 

New buyer enquiries are dropping off faster in London than the UK overall according to RICS survey data.

 

New buyer enquiries RICS

The deceleration of prices is more apparent in London than in the UK generally according to Hometrack’s new Cities House Price Index.

 

UK vs london Hometrack

 

Regional shifts for all regions (source: Land Registry September House Price Index)

 

regional house prices Nov 2014

 

Prefer pictures, see our Infographic

To see how we calculate our House Price Watch click here or to see previous reports click here