MNI DATA: UK Nationwide House Prices Lower In November

--UK Nationwide house price index -0.7% m/m, 0.5% y/y

--Annual House Prices Slow To Near-Year Yr Low Rate

     LONDON (MNI) - UK house prices fell in December, with annual growth slowing

to the lowest level in almost 6 years, the latest Nationwide House Price Index

showed.

     On month, the Index fell 0.7% in December, below the 0.4% gain seen in

November. The annual rate was 0.5%, well below the 1.9% seen in November  -- and

below the 1.6% seen in October, then a 5-year low.

     Annual house price growth in the Nationwide series had registered between

2-3% since May 2017, but dipped below with the October data and now slips nearer

negative territory.

     "This marks a noticeable slowdown from previous months, where prices had

been rising at a c2% pace. However, it is broadly in line with our expectations

(since the start of the year we had been anticipating a price rise of c1% in

2018)," Nationwide's Chief Economist, Robert Gardner, said.

     Gardner added that future house price growth will largely depend on the

UK's economic performance.

     "Indicators of housing market activity, such as the number of property

transactions and the number of mortgages approved for house purchases, have

remained broadly stable in recent months, but forward-looking indicators had

suggested some softening was likely," he added.

     "It is likely that the recent slowdown is attributable to the impact of the

uncertain economic outlook on buyer sentiment, given that it has occurred

against a backdrop of solid employment growth, stronger wage growth and

continued low borrowing costs. Near term prospects will be heavily dependent on

how quickly this uncertainty lifts, but ultimately the outlook for the housing

market and house prices will be determined by the performance of the wider

economy - especially the labour market," he added.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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