After a brief lull at the end of the stamp duty holiday in September, K home prices have returned to double-digit percentage growth.
Nationwide said its house price index rose 10% in November, up from 9.9% recorded in October. The average price of a UK home is now £252,687, which is about 15% higher than the pre-pandemic level in March 2020.
Robert Gardner, chief economist at Nationwide, said: “Housing market activity has shown some signs of cooling in recent months. For example, the number of housing transactions was down about 30% year-on-year in October. But as of September This was almost inevitable given the end of the stamp duty holiday at last, which gave a strong incentive to the buyers to carry forward their purchases to avoid the additional tax.
“So far this year the number of housing transactions has exceeded the number recorded in 2020 with still two months to go and is actually tracking the numbers seen at the same level in 2007 before the global financial crisis. “
Prices rose 0.9% on a monthly basis, from 0.7% a month ago. Gardner said the market is expected to be “very upbeat” in the coming months, but added that “rising interest rates could have a cooling effect on the market.”
Chestertons CEO Guy Gittins said: “November saw a slight decline in final sales. This is an expected side effect after House Hunters prioritized their first summer vacation since the lockdown in August and September, which has led to this In the course of time, it was rarely seen on its own.
“While November property sales have temporarily turned off record-setting in the first half of the year, buyer inquiries for London properties are still 20% higher than last year, when we had a stamp duty holiday. There was additional incentive, and 47% more than in 2019.
Mark Harris, CEO of mortgage broker SPF Private Clients, said: “While the foam is gone, there is still a lot of activity as this will be the busiest year for the housing market in terms of number of transactions since 2007.”