Prices of residential property increased by 0.4% in November and are 1.6% higher than a year ago, according to figures published by the Nationwide. This price increase is equal to that of October's and the average price of a home is now £165,798.
Although this is good news experts don't think it signals a sudden recovery in the housing market, especially as the UK economy is expected to remain largely flat next year. They are predicting house price growth will be mainly static over the next year, due to subdued demand and the number of housing transactions and mortgage approvals being well below the long-term average.
There are also concerns over the number of job losses during the last quarter. Almost 200,000 people lost their jobs in the 3 months ending September, taking us back to scenes not seen since the depths of the financial crisis. Wage growth is also just 1.7%, which is less than half the current rate of inflation.
The Nationwide's index of consumer confidence is reflecting these factors as it reached an all-time low in October.
Experts think it's down to the housing industry, the government and mortgage lenders to help boost the housing sector. The recently introduced Mortgage Indemnity Scheme, which is designed to help first-time buyers is seen as being a hopeful sign.
However current building rates still remain well below what is necessary to meet housing demand, as less than half the numbers of new homes have been completed in England this year to meet this demand. Even before the recession, building rates were not sufficient to address the problem.