(Reuters) -British home costs surged once more in December because the property market upswing continued, stunning economists who had anticipated to see a slowdown in value progress, mortgage lender Nationwide mentioned on Thursday.
Home costs jumped by 0.7% in month-to-month phrases throughout December, following a 1.2% improve in November, Nationwide mentioned.
A Reuters ballot of economists had pointed to a 0.1% month-on-month improve.
Home costs ended the 12 months 4.7% larger than their stage of December 2023, up from 3.7% in November – the best annual progress fee since late 2022.
The Nationwide survey matches with a slew of stronger than anticipated housing market knowledge, contrasting with different indicators that time to weakening exercise throughout the broader economic system.
“Mortgage market exercise and home costs proved surprisingly resilient in 2024 given the continuing affordability challenges going through potential patrons,” mentioned Robert Gardner, chief economist at Nationwide.
The constructing society caught to its view that home costs have been more likely to rise in 2025 by 2% to 4% – with exercise more likely to be stronger within the first half of the 12 months forward of a rise in property transaction taxes in April.
