UK house prices jumped 1.4% this month, taking the annual increase up to 9.6%, its highest since February last year, the Nationwide Building Society said today.
That was nearly twice the monthly rise of 0.8% in October, when prices were 8%higher on the year and suggests that two increases in borrowing costs in the last three months have not dampened demand.
Bank of England policymakers may worry that the housing market is showing no signs of cooling even with interest rates at a five-year high.
Most economists expect rates have peaked at 5%, but several expect another quarter-point hike early next year and financial markets are pricing in a 50% chance of another rise.
Nationwide said the average price of a home stood at £172,185 sterling in November, up £15,046 from a year ago, and it expected the rise to continue, especially after data showing home loan approvals hit a three-year high in October.
