UK house prices continued to rise in November, again reaching double-digit growth as demand remained strong following the suspension of stamp duty and the end of the employment promotion program.

The average house price in the UK rose 0.9% last month, according to the builder nationwide, after rising 0.7% in October, bringing the average UK home value to £ 252,687. Average house prices are 10% higher than the previous year.

House prices have risen nearly 15% from March 2020 levels when the coronavirus pandemic first hit the UK, Nationwide said.

The continued rise in prices appears to be partly due to a decline in housing supply to buyers. The October housing market was the quietest in nearly a decade, according to data from HM Revenue & Customs, as October home sales were 28% lower than the previous year, following a surge in activity at the beginning of 2021.

Recent data from the Bank of England shows that the number of approved home purchase mortgages in the UK fell to a 16-month low in October.

“There are signs of a slowdown in real estate activity in recent months,” said Robert Gardner, chief economist at Nationwide. He said that after the England and Northern Ireland stamp duty holiday ended in September, this was “almost inevitable” as buyers tried their best to pass on their purchases for the benefit of their customers. which made larger homes with larger gardens more popular.

“The activity in 2021 was extremely dynamic. The number of flat transactions this year surpassed the 2020 numbers by two months to end and is approaching the same period as 2007 before the global financial crisis hit” Gardner said.

However, the prospect is uncertain, he said. “It is not known what impact the new version of Omicron will have on the economy as a whole.”

Gardner added that the rising cost of living is undermining consumer confidence and the prospect of higher interest rates could further cool the housing market.

Samuel Tombs, UK chief economist at Pantheon Macroeconomics, said mortgage rates appear to be on the rise. Swap rates used by lenders to value their loans have risen and profit margins on home loans are “very stringent by previous standards,” he said.

Tom Bill, UK Residential Search Manager at Real Estate Agent Knight Frank, said: Prices. Interest rates could rise more slowly if the new version of Omicron Covid-19 turns out to be more serious than early anecdotal evidence suggests. “

The Omicron version could wipe out the housing market, forcing some homeowners to wait before putting their property up for sale.

“The number of homes for sale is slowing, which keeps prices high,” said Jonathan Hopper, general manager of Garrington Property Finder.

“The holiday season and the new version of Covid are expected to further reduce supply and both potential sellers should wait until the new year to put their homes up for sale. Currently, the decline is gradual and as some sellers are lowering their price expectations, things are stabilizing rather than easing in most areas.

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