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House prices continue to surge in November

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In November UK house prices increased at the fastest rate since 2015.

Figures from Nationwide showed that house prices in last month surged 6.5% average house price in the UK increased from £227,826 to £229,721.

The housing market remained strong over the second lockdown and increased by a 5.8% growth in October.

Thanks to the pent-up demand from the first lockdown and the stamp-duty holiday, the housing market has boomed this year.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “Housing market activity has remained robust. October saw property transactions rise to 105,600, the highest level since 2016.”

“The outlook remains highly uncertain and will depend heavily on how the pandemic and the measures to contain it evolve as well as the efficacy of policy measures implemented to limit the damage to the wider economy. Behavioural shifts as a result of Covid-19 may provide support for housing market activity, while the stamp duty holiday will continue to provide a near term boost by bringing purchases forward.”  

“Housing market activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect, especially once the stamp duty holiday expires at the end of March.”  

Estate agent Jeremy Leaf said: ‘These figures feel like the storm before the calm as buyers and sellers rushed to take advantage of the stamp duty holiday before the March deadline, despite continuing Covid restrictions in October, the possibility of a no-deal Brexit and economic growth stalling. 

‘That frenzy has been since replaced by a quieter, but just as determined mood to complete sales previously agreed. We don’t see any signs either of significant price adjustments, irrespective of whether there is an extension to the stamp duty holiday, with activity continuing to be supported by a shortage of listings and longer-term low-interest rates.’

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