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Contrary to many predictions, house prices rose again in November and returned to double digit percentage growth after a brief lull at the end of the stamp duty holiday in September.
In its latest house price index, Nationwide recorded price growth of 10% in November, a touch higher than the 9.9% recorded in October.
Despite having to effectively close down for much of the spring, the property market roared back in the summer of 2020 after the ending of the first lockdown.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:
“Indeed, activity has been extremely buoyant in 2021. The number of housing transactions so far this year has already exceeded the number recorded in 2020 with two months still to go and is actually tracking close to the number seen at the same stage in 2007, before the global financial crisis struck.
Even if economic conditions continue to improve, rising interest rates may exert a cooling influence on the market. Indeed, house price growth has been outpacing income growth by a significant margin and, as a result, housing affordability is already less favourable than was the case before the pandemic struck”.