UK house prices up by most since March 2022

UK HOUSE prices rose by the most since March 2022, according to one of the country’s largest mortgage lenders, as a strong jobs market and wage gains continued to support buyers’ interest.

Nationwide Building Society said the average home price rose 1.2 per cent to US$340,000 in November, accelerating from last month’s 0.1 per cent rise. Economists were expecting a 0.2 per cent increase. This leaves prices 3.7 per cent higher than a year ago.

The housing market is on track for growth thanks to rising real incomes and easing borrowing costs. Labour’s budget on Oct 30 put an end to uncertainty keeping buyers on the sidelines and provided some relief to households who were largely spared from the £40 billion (S$68.2 billion) of tax increases included in it. Prospective homeowners may be rushing in to avoid an increase in stamp duty next year.

“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,” said Robert Gardner, chief economist at Nationwide. “Household balance sheets are also in good shape, with debt levels at their lowest levels relative to household income since the mid-2000s.” BLOOMBERG