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UK house prices recorded a modest increase in November, rising by 0.3% on a seasonally adjusted basis, according to Nationwide. This followed a smaller rise in the previous month and came despite concerns linked to the finance minister's recent budget. The average house price reached 272,998 pounds (USD 360,739.56). Annual growth eased to 1.8%, the weakest since mid-2024, partly due to strong gains seen a year ago after interest rate cuts and policy changes. Supportive mortgage approvals and expectations of lower interest rates have given economists confidence that affordability may slowly improve.
UK house prices saw a mild increase in November, rising by 0.3% on a seasonally adjusted basis. This was slightly stronger than economists had expected and came after a 0.2% rise in the previous month. According to Nationwide's latest data, the average house price reached 272,998 pounds (USD 360,739.56). The latest movement followed continued discussions around the finance minister Rachel Reeves' budget and its potential effect on housing sentiment. Advertisement
The annual growth rate eased to 1.8% from 2.4% a month earlier, marking the slowest pace since mid-2024. The softer annual number was partly due to unusually sharp gains recorded around the same period last year, after the Bank of England had reduced interest rates and Reeves had presented her first budget.
Economists surveyed earlier had anticipated a 0.1% monthly rise and a 1.4% annual increase. A senior economist from Pantheon Macroeconomics noted that underlying house price inflation could strengthen over the coming year, now that the budget has passed, and added that key market indicators were still showing stable demand.
Fresh data released by the Bank of England earlier this week showed mortgage approvals in October were higher than expected. The central bank is also widely expected to reduce its main interest rate to 3.75% from 4% in December, a move economists believe could help support borrowing conditions.
Nationwide's Chief Economist Robert Gardner said affordability may improve gradually if income growth continues to rise faster than house prices. He also noted that borrowing costs could ease further if the Bank of England proceeds with additional rate cuts in the coming months.
Some recent market indicators have pointed to caution among buyers during the run-up to Reeves's tax and spending plan, which was delivered late last month. Gardner added that the newly introduced tax on high-value homes is unlikely to significantly affect the overall housing market, though it may slightly reduce the number of new rental properties entering the market.
Source Reuters
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