Michelle ThompsonNationwide reports an unexpected rise in UK house prices, fueled by resilient market activity, even as near-record valuations challenge affordability for buyers.
UK house prices grew at their quickest pace in nearly two years this November, surprising analysts despite high prices stretching affordability, according to Nationwide’s data. The annual growth rate climbed to 3.7% in November, up from 2.4% the previous month, marking the fastest increase since November 2022. The average house price reached £268,144, just 1% below record highs seen during the post-COVID housing surge in 2022.
Nationwide attributed the sustained demand to resilient labor market conditions, low unemployment, and robust real income growth, despite higher interest rates. Monthly price growth also accelerated, with a 1.2% rise from October to November, the largest increase since early 2022.
However, affordability challenges remain due to elevated house price-to-income ratios and borrowing costs. While some experts anticipate further support for housing activity as mortgage rates gradually decline, the sustainability of the recent growth remains uncertain.
In a lighter finding, a Zoopla survey revealed that proximity to pubs influences home-buying decisions for many Britons, emphasizing the social and economic value of local pubs in communities.
