Housing supply growth over the last decade has also risen in tandem across the UK
House prices in the UK rose by 0.3% in November, as the property market continues to defy the pressures from political and economic uncertainty.
According to the latest index published by mortgage lender Nationwide, the average price of a home in the UK now stands at £214,044, with an annual growth rate of 1.9% in the year to November.
Commenting on the growth seen in the index, Nationwide’s chief economist, Robert Gardner, said: ‘In the near term, the squeeze on household budgets and the uncertain economic outlook is likely to continue to dampen demand, even though borrowing costs remain low and the unemployment rate is near 40 year lows.’
In addition to tracking property growth, November’s index also analysed how changes in the UK’s housing supply have impacted the rate of house price growth over the past decade.
Recording a rise of 1.9 million over the past decade, the rate of new home construction or conversion has seen the number of abodes in the UK increase by 8.5% overall since 2008.
Home to the largest number of new properties, the strongest growth in prices has been seen in the South West, London and the East of England, with Gardner’s analysis suggesting that supply growth has been responding to price increases.
Conversely, in the North West and North East, where property prices have remained closer to the pre-crash levels of 2007, supply of new homes has been significantly more subdued.
Despite lower supply, a recent index from Hometrack has revealed that it is the regional markets that have remained unaffected by Brexit.