UK home costs jumped once more in December, Nationwide says

(Reuters) -British home costs surged once more in December because the property market upswing continued, shocking economists who had anticipated to see a slowdown in value development, 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 yr 4.7% greater than their stage of December 2023, up from 3.7% in November – the best annual development price since late 2022.

The Nationwide survey suits with a slew of stronger than anticipated housing market information, contrasting with different indicators that time to weakening exercise throughout the broader financial system.

“Mortgage market exercise and home costs proved surprisingly resilient in 2024 given the continued affordability challenges dealing with potential patrons,” mentioned Robert Gardner, chief economist at Nationwide.

The constructing society caught to its view that home costs had been more likely to rise in 2025 by 2% to 4% – with exercise more likely to be stronger within the first half of the yr forward of a rise in property transaction taxes in April.