House prices fall sharply in November

House prices fell by 0.8 per cent in November, Nationwide has revealed – but the lender has said that the fluctuations currently being seen in the market are in a large part dependent on sentiment.

Prices fell by almost £2,000 on the month, the study added, with the annual rate of inflation down from 9.7 per cent in October to just 6.9 per cent.

However, in light of the sharp rise in prices seen in October, Nationwide has said that the quarterly rate of growth – which fell from 1.8 per cent to 1.5 per cent in November – provides a more accurate picture of the market.

"Housing market sentiment can itself be an important driver of the housing market, and at this point in the cycle it can easily swing on the back of every new morsel of data reported," said Nationwide chief economist Fionnuala Earley.

"There is a plethora of housing market indicators and looking at the headline figures alone can sometimes be confusing," Ms Earley admitted.

Earlier this week the Land Registry reported that prices in England and Wales rose by 0.1 per cent in October.

Finance your build or renovation with one of BuildStore's unique finance packages

© Adfero Ltd