House prices surge in November

UK house prices last month experienced an unexpected growth of 3.7%, up from 2.4% in October, marking the fastest increase in nearly two years, according to Nationwide. The average price reached £268,144, just 1% below the record high. Robert Gardner, Nationwide's chief economist, said: “The acceleration in house price growth is surprising, since affordability remains stretched by historic standards.” Despite high prices and elevated interest rates, housing market activity has remained resilient, with mortgage approvals nearing pre-pandemic levels. Ruth Gregory, deputy chief UK economist at Capital Economics, expressed scepticism about the sustainability of this growth, citing stretched price-to-income ratios but noted potential relief from expected drops in mortgage rates. Nationwide indicated that recent figures were largely unaffected by Labour's first budget, as most mortgage applications were initiated prior to the budget announcement.

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