‘Surprising’ pick-up in house price growth, says Nationwide

House prices grew at their fastest annual pace for two years last month, according to the latest survey from Nationwide.

The lender said the price of a typical UK home rose by 3.7% in November from a year earlier, with property values close to a record high.

It said the acceleration in house price growth was “surprising, since affordability remains stretched by historic standards”.

However, it noted that the housing market had remained “relatively resilient” in recent months, with the number of mortgages approved at near pre-pandemic levels.

House prices rose by 1.2% between October and November, Nationwide said, the biggest month-on-month increase since March 2022.

The average property now costs £268,144, according to the building society.

The number of mortgage approvals last month hit the highest level since August 2022, according to Bank of England figures released last week.

Nationwide chief economist Robert Gardner said low levels of unemployment combined with pay increases that were outstripping inflation had helped to “underpin” the housing market.