UK house prices ticked higher in November, even as annual growth cooled slightly. Nationwide’s latest index shows the average home now costs £272,998, with annual price growth easing to 1.8%, down from 2.4% in October.
Monthly growth, however, picked up to 0.3%, beating expectations for a modest 0.1% rise.
Nationwide’s chief economist, Robert Gardner, said the market has shown “resilience” in recent months.
Mortgage approvals remain close to pre-pandemic levels and prices are edging up despite borrowing costs being more than twice what they were before Covid. He noted that weak consumer confidence and signs of softer employment make the steady performance all the more notable.
Gardner also played down the impact of the property tax changes announced in last week’s Budget. The new council tax surcharge on homes worth over £2 million, widely dubbed a mansion tax, will apply only to a small share of properties, though increased taxes on rental income could strain supply in the lettings market.
Looking ahead, Nationwide expects affordability to improve gradually if wages keep rising faster than house prices, with some relief likely if interest rates ease next year.
Analysts say November’s stronger-than-forecast price rise suggests buyers who paused ahead of the budget may now return, potentially lifting activity into the new year.