Nationwide Reports Fastest Annual Rise in UK House Prices Since November 2022

Image Credit: Reuters

UK house prices increased at their fastest annual rate since November 2022, according to data from mortgage lender Nationwide. In November, house prices rose by 3.7% year-on-year and by 1.2% month-on-month, both exceeding economists' expectations.

Despite the higher borrowing costs, housing market activity has remained relatively strong, with mortgage approvals nearing pre-pandemic levels. Nationwide's chief economist, Robert Gardner, noted that housing market momentum continues to build, supported by the recent reduction in borrowing costs by the Bank of England. He expects the market to strengthen further as affordability improves, aided by gradual rate cuts and rising wages. 

Additionally, the UK government has committed to increasing house-building through reforms to the planning system, although supply shortages are likely to keep prices elevated in the medium term.

Paraphrasing text from "Reuters" all rights reserved by the original author.