HOUSE PRICES RECORD A SECOND MONTH OF GROWTH – Nationwide House Price Index showed average values were 0.2% higher

House prices recorded a second month of growth in November, according to a closely-watched report.

The Nationwide House Price Index showed average values were 0.2% higher, building on the 0.9% increase it measured in October.

It meant, the mortgage lender said, that prices were 2% down on an annual basis – outperforming the expectations of economists in a poll for the Reuters news agency which had forecast a 2.5% decline.

The rolling 12-month measure stood at its strongest level since February.

Nationwide released its report just days after Bank of England data showed a leap in mortgage approvals in October.

Analysts said the rise, to 47,400 from an eight-month low the previous month, demonstrated a renewed sense of optimism among buyers that the Bank’s cycle of interest rate hikes to tackle stubborn inflation was at an end.

The Nationwide report covering October had indicated a greater role from a shortage of properties on the market.

The Bank of England governor Andrew Bailey has made it clear he does not expect the Bank to announce interest rate cuts for the foreseeable future – denting some confidence in markets that the Bank rate could slip back to 5% in June.

It currently stands at 5.25%.

Housing market experts say the pause to rate hikes, which started in September, would continue to help support prices in the coming months, barring any shocks, amid the lack of any stimulus to support activity.