UK house prices rose for third month in November as interest rate expectations shift

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The UK's house price recovery 'continued in November', according to the Nationwide Building Society, as falling mortgage rates help to warm up demand.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

01 Dec 2023

Following Nationwide’s latest house price index, released this morning, they say:

Nationwide’s measure of house prices in November delivered a third successive month-on-month increase. The rise of 0.2% was modest, but prices are proving resilient in the face of an increase in mortgage rates and a sluggish economy. The EY ITEM Club thinks the odds of a serious correction in prices are increasingly remote.

Average rates on new mortgages are at a 15-year high and activity in the housing market, as measured by mortgage lending and approvals, is weak. And the Monetary Policy Committee’s (MPC) ‘high for longer’ message on interest rates means markets have reined back expectations of how much borrowing costs will be cut next year.

But the MPC’s decision to pause rate rises in its last few meetings has contributed to a decline in quoted mortgage rates. The EY ITEM Club thinks inflation will recede