On Monday, data from Nationwide, a mortgage lender, revealed that House prices in Britain in November have skyrocketed at the fastest annual pace since the same month in 2022, adding to signs of resilience in the property market despite rising borrowing costs.
In November, the prices surged 3.7% annually and surged 1.2% on a monthly basis. These numbers have exceeded the economist’s prior estimation.
Robert Gardner, Nationwide’s chief economist, said that in recent months the number of mortgage approvals is nearly at its pre-pandemic level, despite a greater interest rate, showing signs of resilience in the market.
Other figures have also shown the British housing market gaining momentum. Last week, the Bank of England record shows the number of mortgages for house purchases has hit a record high since August 2022.
Last month, the BOE cut its borrowing cost down for the second time in four years. The bank also said that future rate cuts would be more gradual.
Gardener remarked that if the UK’s economy continues to recover, activities in the housing market are doubtlessly to gradually strengthen as affordability continues to increase.
Labour’s government under Prime Minister Keir Starmer, has promised to reform the urban planning system to ramp up home construction, his government also set a quota to hasten the process.
