UK house prices experienced a notable increase in November, climbing 1.2% month-on-month. This sharp rise marks a rebound in the annual growth rate, which surged to 3.7%, up from 2.4% in October. The annual growth is now at its fastest pace since November 2022, highlighting a renewed strength in the housing market.
As a result of this momentum, house prices are now just 1% below their all-time peak, signalling resilience despite broader economic pressures. This upward trend reflects renewed buyer activity and underscores the ongoing demand in the UK property market.
It could be suggested that the recent pickup in house price growth is not primarily linked to the upcoming stamp duty changes. Most mortgage applications predate the Budget announcement, indicating that this surge reflects broader market dynamics rather than policy adjustments.
Robert Gardner, Nationwide’s Chief Economist recently revealed: “Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the higher interest rate environment.
“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.
The forthcoming stamp duty changes are expected to encourage buyers to accelerate their property purchases in order to avoid incurring extra tax.
There is potential for a surge in transactions during the first quarter of 2025, particularly in March, followed by a period of reduced activity over the forthcoming months, similar to patterns observed after previous stamp duty changes. Such shifts could temporarily alter the demand-supply balance and encourage price trends.
However, if the economy maintains a steady recovery, housing market activity could ultimately build momentum. This improvement would be supported by easing affordability constraints, such as slightly lower interest rates.
Would you like to find out more? Get in touch
For more details, please reach out to Jonathan Birkett, our Equity Release and Mortgage Adviser. Whether you’re a first-time buyer or looking to secure the best re-mortgage rates, Jonathan is available to discuss your needs via email at jonathan.birkett@pkgroup.co.uk or by phone at +44 (0)20 8334 9953.
PK FINANCIAL PLANNING LLP is authorised and regulated by the Financial Conduct Authority (‘FCA’), 12 Endeavour Square, London E20 1JN. Your home is at risk if you do not keep up repayments on a mortgage secured on it.
