UK house prices experienced a significant increase in November, rising at their fastest rate in two years, supported by robust wage growth and declining mortgage rates, according to data from Nationwide. The price of a typical home grew by 3.7% year-on-year, up from 2.4% in October, marking the highest annual growth rate since November 2022. On a monthly basis, prices rose by 1.2%, bringing the average home price to £268,144—just 1% below the all-time peak in 2022.
Nationwide’s chief economist, Robert Gardner, attributed the growth to strong labour market conditions, including low unemployment and rising incomes that have outpaced inflation. He also highlighted the strength of household finances, with debt levels at their lowest relative to income since the mid-2000s.
Complementary data from the Bank of England revealed that October saw the highest level of mortgage approvals since August 2022. The property market has benefited from a decrease in mortgage rates, driven by falling inflation and two interest rate cuts by the Bank of England this year, bringing the rate to 4.75%.
Many estate agents are reporting increased confidence amongst buyers and a surge in demand. This could be in part due to buyers looking to complete transactions before next years stamp duty changes coming in April.
