Although Nationwide have concluded that the housing market has remained ‘highly resilient’ this month, UK economic recovery is unlikely to pick up substantially in 2012.
In November, the price of a typical house was 1.6% higher than this time last year, standing at £165,798, according to Nationwide’s findings. However, construction is at its lowest since the Second World War, and mortgage lending is scant amid high rent and purchase prices.
Nationwide has commented that in spite of the rise in prices in November, demand conditions remained ‘extremely subdued’.
Better news came earlier this month when the government revealed a mortgage indemnity scheme, which aims to allow people to purchase new-build houses with only 5% deposit, a stark contrast with the 20% often required by commercial lenders.
Property Market Remains 'Resilient' - Press Association