Acceleration in prices in Nationwide index was unexpected
House prices have risen at their fastest rate since March 2022, according to a monthly index.
The latest Nationwide house price index shows prices in November were 1.2% up on the previous month, the highest monthly rise since March 2022.
Prices were also up 3.7% on the figure for November the previous year, which is the largest year-on-year rise since November 2022.
Robert Gardner, chief economist at Nationwide, said: “The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels. “
Gardner said the pickup in price growth is unlikely to have driven by the increases in stamp duty announced in the Autumn Budget as the majority of mortgage applications will have been made before the 30 October announcements. The government has increased stamp duty from April 2025, leading to an expectation of increased activity as buyers try to beat the tax rise.
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Gardner said: “Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the higher interest rate environment.”
Matt Thompson, head of sales at estate agents Chestertons, said: “With the current level of buyer activity expected to continue well into the new year, we predict London properties to hold their value or see a gradual value increase of up to 3% over the course of next year.”
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