UK house prices see strongest annual growth in 2 years 

UK house prices rose 1.2 per cent month-on-month in November, marking the fastest monthly gain since March 2022, according to the latest data.

Annual growth accelerated to 3.7 per cent, rebounding sharply from 2.4 per cent in October and reaching the highest rate since November 2022. Prices are now just 1 per cent below their all-time peak recorded in summer 2022.

Despite stretched affordability due to elevated house prices and high interest rates, housing market activity has remained resilient, according to Robert Gardner, Nationwide’s Chief Economist.

He said that mortgage approvals are nearing pre-pandemic levels, supported by robust labour market conditions and low household debt relative to incomes.

The market may experience volatility in early 2025, as upcoming stamp duty changes could prompt a surge in transactions before the tax adjustments take effect, followed by a potential slowdown.

However, steady economic recovery, alongside easing affordability constraints, is expected to sustain gradual growth in housing market activity.

Attribution: Nationwide

Subediting: M. S. Salama