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Nationwide: house prices edge back into double digits in November

ended 01. December 2021

House price growth edges back into double digits in November

The UK housing market did what only the UK housing market could do in November, according to the Nationwide, delivering double-digit house price growth once again. According to the building society (feels odd saying that word)…

  • Annual house price growth increased slightly in November to 10.0%
  • Prices up 0.9% month-on-month

We sought the views of property experts around the UK…

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6 responses from the Newspage community

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"November has been where we'd expect it for this time of the year, with more activity from first-time buyers. That said, leading up to Christmas, people focus on having a good time with friends and family, and the property market enters its seasonal hibernation. All the indicators are that the Bank of England will need to raise rates in December, and we are seeing almost all lenders increasing fixed rates day by day preparing for the marginal rate hike, which will likely bring the base rate up to 0.25%. However, that shouldn't be too much cause for concern. Deals are still great, lending is still cheap and the market is buoyant. So will it cost a little more to remortgage next month than now? Yes. Will it break the bank? No. As always, the mantra of 'get on with it' still rings true. Regarding property prices, as long as we can sidestep further COVID restrictions brought on by the dark lord Omicron and the inevitable economic problems that could bring, prices will continue to rise due to the intractable housing supply shortage we face as a nation."

"Demand for property is still at an all-time high, especially among first-time buyers and upsizers. The major issue is the lack of properties available on the market. That's typical at this time of the year, as prospective sellers don't want to instruct before Christmas. Hopefully the lack of stock will improve in January. All indicators seem to suggest that the Bank of England will raise rates but it may surprise us again and hold. Either way, we do not expect property prices to drop but rather hold steady due to demand and the lack of supply. We expect prices in 2022 to hold up, as they have already levelled off in parts of the country. There has been a delicate recalibration in prices and certainly no material drop-off."

"Demand in the market is still off-the-scale but, as is standard at this time of the year, a lot of sellers are holding off until January now before coming onto the market. "Interest remains strong, particularly from first-time buyers, and we're spending a lot of time prepping them well to leap at the properties that hit the market in Jan. If you aren't dealing with a good broker now to get organised, you risk missing out in the new year. "Remortgage business for those that don't want to up sticks is moving at an incredible pace as homeowners make the most of what could well be the last hurrah of ridiculously low interest rates."

"The shorter days and colder nights, combined with potential buyers' minds moving to more festive thoughts, undoubtedly put the coolers on new buying activity in November and this will continue in December. Remortgagers, landlords and investors, and other purchases already in process will continue on 'business as usual'. Although October provided a temporary respite, it's still widely expected the Bank of England will increase interest rates imminently, with markets expecting a rise to 0.25% to be announced in December. As such, the majority of mortgage lenders have already factored a rise into their own pricing, and therefore mortgage interest rates have increased slightly in anticipation. Given the historically cheap finance we have at present, we don't expect a minor increase in interest rates to create an issue for most borrowers. That said, those that have highly leveraged strategies where borrowing is high, disposable income low, or those that have a less stable income, may feel the pinch more as they could find they are left with less cash at the end of the month."

"The housing market remains strong across the board with plenty of buyers looking to purchase a property. The main issue is the lack of properties being listed, leaving many buyers waiting for the right property to became available. Many agree that the Bank of England will increase the base rate when they meet on the 18th of December. With post-furlough job figures looking positive and inflation still running too hot, there is real pressure on the Bank of England to raise rates. Indeed, many lenders have already priced an increase into their offering. "House prices are likely to continue to rise in 2022 but perhaps at a slower rate than we have seen in 2021. Even if the Bank of England increases rates to pre-pandemic levels, this will do little to dampen demand."

"There is still a large amount of demand for property but simply not enough stock to supply it, which is keeping the market very competitive. The level of enquiries we have seen has been more heavily weighted towards first-time buyers and investors, and less upsizers, since the end of the stamp duty relief. "Everyone is expecting a rate rise soon and I don't predict there will be any drastic increases, which should maintain confidence among buyers going forwards. As it stands, property prices show no sign of falling. I don't expect to see any significant price drops but for prices to cool and plateau during 2022."