UK House Prices Rise Despite Budget Uncertainty

Average UK house prices rose in November despite concerns around rumoured changes in Chancellor Rachel Reeves’ budget announcement, according to Nationwide.

The average property rose 0.3% to £272,998 in November compared to the month before when it stood at £272,226, the building society revealed in its latest House Price Index.

The rise exceeds the 0.1% monthly increase predicted by economists polled by Reuters.

The table below shows how much average house prices rose according to Nationwide.

*Source: Nationwide (Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

It comes as uncertainty hit the property market in anticipation of changes to property taxes, such as stamp duty, rumoured to be announced.

Data suggested that asking prices fell £6,590 ahead of the budget as sellers tried to lock in sales before to avoid being affected by a radical overhaul.

However, last week the Chancellor unveiled a council tax surcharge or “mansion tax” which applies to homes in England worth £2m or more from April 2028.

The surcharge will be split into four price bands. The lowest applies to homes worth £2m-£2.5m at £2,500 and rises up to £7,500 for homes valued at £5m or more.

What does it mean for you?

House price growth suggests confidence in the property market despite fears around policy changes that could have been announced by the Chancellor last week.

For sellers, it indicates that there’s still healthy competition for homes and an opportunity to get good value.

For buyers, it’s important to ensure that you’re in a solid position to purchase the right property to suit your needs.

Reviewing your financial picture, particularly your house deposit and credit score if you’re applying for a mortgage, can help set you up for success.

It’s also important to have enough money set aside for additional costs, including a house survey, legal fees and moving costs.

Maximising your savings using a top-rate savings account, Cash ISA or Stocks and Shares ISA.

A Lifetime ISA could also help you grow your funds if you’re a first-time buyer, depending on the value of the home you’re looking to purchase.

For more tips, check out our podcast episode: The Truth About Buying a Home.