The Index revealed that annual house prices reached 9.6 per cent, up from the October findings of 8 per cent, representing the highest rate of annual house price growth since February 2005.
As a result, Nationwide reported that the average house price reached £172,185, a rise of over £15,000 since the November 2005 findings. This represented an average rise in property prices of £41 per day.
The Nationwide Index also indicated that house purchase approvals increased, to reach their highest levels since December 2003.
The lender cast doubts on further Base Rate rises in the coming months. Fionnuala Earley, group economist at Nationwide, said: “The Monetary Policy Committee expects the economy to grow by around 3 per cent next year and, more importantly, it has revised up its estimate of trend growth. While the Bank of England, as expected, raised rates to 5 per cent in November, its analysis suggests a lower likelihood of a further increase in rates in the short-term.”
Commenting on the leap in house prices in November, Jason Richardson, director at YooToo Financial Services, said: “That’s quite a big jump on previous months and it’s surprising given the increase in rates. It might be down to the fact we had a slow start to the year as it was unclear what was going to happen to inflation and rates, but as inflation is now more under control, this might be reflected in house price growth. However, it will probably level off at around 1 per cent.”
