United Kingdom: Housing market remains buoyant in November
December 1, 2021
According to the Nationwide Building Society, house prices in the United Kingdom rose 0.9% month-on-month in November, following October’s 0.7% rise. On an annual basis, house price growth was 10.0%, above October’s 9.9% increase. House prices in November likely continued to be buoyed by tight home supply, low interest rates and changes in housing preferences due to the pandemic, which more than offset the end of the stamp duty holiday on home purchases.
Going forward, tight supply and changing housing preferences could continue to support demand, although reduced housing affordability, potentially higher interest rates and the Omicron variant threaten to take some steam out of the market next year.
Author: Oliver Reynolds, Economist