The average house price in the UK has reached £268,144, just 1% below the all-time high recorded in the summer of 2022.

This monthly increase of 1.2% in November marks the largest gain since March 2022, reflecting a growing demand in the housing market.

Upcoming changes to stamp duty, effective from Spring 2025, will increase the threshold for first-time buyers from £300,000 to £425,000, potentially driving prices higher as buyers rush to secure deals.

Looking ahead, Gardner anticipates a surge in sales in early 2025 before a potential downturn following the stamp duty changes, contingent on economic recovery.

The budget changes could lead to increased transactions until the end of March 2025 as buyers rush to avoid the new taxes, followed by a potential decline in activity thereafter.

Nathan Emerson, chief executive of Propertymark, indicated that increased buyer confidence and improved affordability due to easing inflation may be contributing to market activity and steady house price growth.

Nationwide's figures were likely unaffected by Labour's budget changes, which included a rise in stamp duty for second homes starting April 2025, as most mortgage applications were initiated before the budget announcement.

In November 2024, house prices grew at the fastest rate in nearly two years, with an annual growth rate rebounding to 3.7% from 2.4% in October.

Robert Gardner, Chief Economist at Nationwide, expressed surprise at the acceleration in house price growth, noting that affordability remains stretched due to high prices relative to incomes and elevated interest rates.

Experts predict increased activity in the housing market over the next few months as buyers aim to take advantage of current stamp duty rates before they change.

Strong labor market conditions, characterized by low unemployment and income growth, have been supporting the increase in housing market activity and prices since early 2024.

The previous record for house prices was driven by a post-Covid rush and historically low interest rates, but current conditions for borrowers have worsened due to rising interest rates aimed at combating inflation.