UK house prices nudge upwards and defy downbeat expectations


The latest Nationwide House Price Index reveals that UK house prices are continuing on their steady ascent, albeit at a slower rate than before.

The house price rise between October and November was only fairly incremental at 0.1%, but follows the trend of rising prices that has become the norm.

Year-on-year, the rise was 2.5%, which is down on the year-on-year comparison for October at 4.4%.

Robert Gardner, Nationwide’s chief economist, said: “Low mortgage rates and healthy rates of employment growth are providing support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence. The lack of homes on the market is providing support to house prices.”

The abolition of stamp duty on homes up to £300,000 for first-time buyers is only likely to have a modest impact to start with, as demand is still high, Nationwide says. Critics say the changes in the Budget could actually have the effect of pushing house prices up further.

Looking ahead

Next year is likely to see the trend continue, according to Jonathan Hopper of Garrington Property Finders.

“Looking ahead into 2018 it’s likely we’ll see much of the same,” he said. “Limited supply will nudge up average prices nationwide, but with falling real wages eating into what buyers can afford, it’s sellers who are willing to be pragmatic on pricing who are most likely to achieve a sale.”

Research by Halifax earlier this month revealed that the total value of UK property had now reached £6trn, with London homes alone worth as much as £1.3trn – the total combined value of Scotland, Wales and the north of England.

The government is trying to shorten the supply and demand gap in housing by building 300,000 new homes a year, although critics have said that this target will not be met unless other changes are made.

David Orr, chief executive of the NHF, said: “There are a range of useful measures in the Budget, which will have a combined effect of seeing some, I would think, relatively small incremental change and seeing some relatively small growth in the number of new homes built. If we’re going to get to 300,000 new homes a year, we need, I think, quite muscular government action on the supply of land.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

price graph

UK house prices nudge upwards and defy downbeat expectations


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.