UK house prices jump 3.7% in November

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UK house prices rose much more than expected in November and at the fastest pace in two years, helped by solid wage growth and declining mortgage rates, according to a lender. 

The price of a typical UK home rose 3.7 per cent year on year in November, up from the 2.4 per cent recorded the previous month and marking the fastest rate of annual growth since November 2022, according to Nationwide.

House prices were up 1.2 per cent month on month, taking the average cost to £268,144 — just 1 per cent below the all-time peak in 2022.

Economists polled by Reuters had expected a 0.2 per cent rise month on month and a 2.4 per cent annual increase.

Mortgage rates have declined from their peak in summer of 2023. Robert Gardner, Nationwide’s chief economist, said: “Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year.”