UK house price growth accelerated in December - Nationwide

According to the report from Nationwide Building Society, house prices in the UK rose by 1.4% y/y in December after increasing by 0.8% in November. On a monthly basis, house prices rose 0.1%, compared with a 0.5% increase in November and a forecast of 0.0%.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: "Annual UK house price growth edged up as 2019 drew to a close, with prices 1.4% higher than December 2018, the first time it been above 1% for 12 months. Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth appeared to slow through the year as a result of weaker global growth and an intensification of Brexit uncertainty. The underlying pace of housing market activity remained broadly stable, with the number of mortgages approved for house purchase continuing within the fairly narrow range prevailing over the past two years. Healthy labour market conditions and low borrowing costs appear to have offset the drag from the uncertain economic outlook. Looking ahead, economic developments will remain the key driver of housing market trends and house prices. Much will continue to depend on how quickly uncertainty about the UK's future trading relationships lifts as well as the outlook for global growth. Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next twelve months".