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UK house price growth slowed in November, though monthly gains continued as the housing market showed resilience despite weaker consumer confidence and a softening labour market, according to Nationwide on Tuesday. Annual growth eased to 1.8% in November from 2.4% in October, Nationwide said. It was milder than a deceleration to 1.4% that had been expected by the FXStreet-cited consensus. Prices rose 0.3% month-on-month in November after seasonal adjustment, slightly stronger than the 0.2% increase seen in October. The consensus was for no monthly change. The average UK house price stood at £272,998, up from £272,226 a month earlier. Nationwide Chief Economist Robert Gardner said the market has been ‘fairly stable in recent months’, with prices rising at a ‘modest pace’ and mortgage approvals holding around pre-pandemic levels. Gardner noted that this stability was striking ‘against a backdrop of subdued consumer confidence and signs of weakening in the labour market’, particularly given that mortgage rates remain more than twice as high as before Covid-19 and prices are still close to record levels. He added that measures in last week’s budget are unlikely to shift market dynamics materially. The planned council tax surcharge on high-value homes, due in April 2028, will affect fewer than 1% of properties in England and around 3% in London. Tax increases on property income, however, ‘may dampen the supply of new rental properties’, Gardner warned. Rental supply has been tight for some time, raising the risk that this will ‘maintain upward pressure on rental growth’, which has been running at historically high levels. Looking ahead, Nationwide expects affordability to improve ‘modestly’ if earnings continue to grow faster than house prices. Borrowing costs may ease further in the coming quarters if the Bank of England lowers interest rates again. ‘This should support buyer demand, especially since household balance sheets are strong,’ Gardner said, noting that the ratio of household debt to disposable income is now at its lowest level in 20 years. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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