UK house prices rose in November despite pre-budget uncertainty, according to Nationwide, which predicted that the new high-value council tax surcharge would have a limited impact on the market. The building society reported a 0.3% month-on-month increase, above the 0.1% forecast by economists, bringing the average home price to £272,998.
Chancellor Rachel Reeves announced a new council tax surcharge for homes worth £2 million or more, starting at £2,500 per year for properties valued between £2 million and £5 million, rising to £7,500 for those over £5 million. The charge will apply to fewer than 1% of properties in England and about 3% in London, according to Nationwide’s chief economist Robert Gardner.
The annual rate of house price growth slowed to 1.8%, the lowest since June, but still exceeded the 1.4% rise economists had anticipated. Gardner described the market as “fairly stable” and “resilient” against a backdrop of subdued consumer confidence and a weakening labour market.
Lower interest rates have supported activity, with the Bank of England keeping rates at 4% in November. Mortgage broker Mark Harris of SPF Private Clients noted that lenders remain keen to lend, and suggested borrowers might consider locking into rates now ahead of potential further cuts.
Sarah Coles of Hargreaves Lansdown said buyers had waited for the budget, and added that 2026 could bring more positivity, with the new property tax affecting only a small slice of the market.
