Demand for property purchases is increasing once more, with a rise in house prices in November, according to a new index.
Despite economic concerns in the immediate aftermath of the referendum, the mortgage lender Nationwide has reported that the market is showing signs of strengthening demand thanks to a strong labour market and record low mortgage rates.
The building society revealed that out of all of the mortgages they have approved, fixed rate agreements have been the most popular in the last twelve months, with 95% of first time buyers electing for this type of loan.
Nationwide said that buyers are eager to benefit from the current Bank of England base rate, which stands at a historic low of 0.25%.
Following an increase in demand, the house price index published by the organisation demonstrated a rise in property values, with a monthly increase of 0.1% and a year-on-year increase of 4.4% - bringing the average value of a property in the UK to £204,947.
Whilst this does show an improvement in the market from October, remained steady with no change in house values, November’s remain the lowest monthly increase seen in 2016 – despite staying in line with previous years’ predictions of the market.
Commenting on the report, Nationwide’s Chief Economist, Robert Gardner, said:
‘The relatively low number of homes on the market and modest rates of housing construction are likely to keep the demand/supply balance fairly tight in the quarters ahead, even if the economic conditions weaken as most forecasters expect.’
Earlier this week, the Bank of England also revealed that the demand for mortgages had increased for the second successive month – despite Brexit concerns.