UK Nov house prices rise at fastest rate in 2 years - Nationwide

UK house prices rose in November at their fastest rate in two years, despite affordability pressures on buyers, according to data published by mortgage lender Nationwide on Monday.

On an annual basis, prices rose 3.7% in November and were 1.2% higher month-on-month. Nationwide said recent changes to stamp duty would probably bring purchase forward early next year to avoid paying extra tax.

"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," said Nationwide chief economist Robert Gardner.

“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.”

However, Gardner said providing the economy continued to recover steadily as the building society expected, underlying market activity was likely to continue to strengthen gradually “as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth”.

Reporting by Frank Prenesti for Sharecast.com