UK house prices have unexpectedly surged to a two-year high, according to a recent Nationwide survey. The average price of a house sold in November increased by 1.2% compared to October, reaching £268,144. This marks the largest monthly gain since March 2020 and brings the annual increase to 3.7%, the fastest since November 2022. Despite concerns about affordability and rising mortgage rates, the housing market has shown resilience, with strong activity and solid labor market conditions supporting the growth in prices. Nationwide predicts a jump in transactions in the first quarter of 2025 as buyers rush to beat changes to stamp duty next April. However, it is important to note that these surveys only track buyers taking out a mortgage, which may not capture the full market dynamics. Experts point to increasing buyer activity driven by stamp duty changes and high demand from first-time buyers, leading to a positive outlook for the property market. However, concerns about the broader economy and potential trade wars, such as Donald Trump’s threat to impose 100% tariffs on Brics countries challenging the US dollar, may impact the future trajectory of the housing market. Overall, the surprising acceleration in house price growth highlights the complexity and resilience of the UK property market amidst global economic uncertainties.
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House prices in the UK unexpectedly reach a two-year peak; Stellantis stocks drop 5.5% following CEO’s departure – live updates on business
