New figures show that house prices bounced back to double digit growth last month, as the property market kept up its buoyant pace.
In November, prices were up 10% from the same month last year, according to an index released by Nationwide, up from 9.9% in October and beating expectations that growth would slow to 9.3%.
The average house price was at 252,687 at the latest increase, according to the index.
Britain s housing market was boosted by a stamp duty holiday that helped it recover from a slowdown early in the epidemic, with year-on-year price growth topping 13% in June this year, according to Nationwide's index.
There are signs of some homeowners looking to trade short commutes to the office for more spacious homes further out of cities as the pandemic transforms working patterns.
Transaction volumes took a hit when the stamp duty break ended but they have already surpassed 2020 levels and prices continue to push higher.
Nationwide s chief economist Robert Gardner said prices were now almost 15% higher than when the epidemic first struck the UK in March last year.
In 2021, activity has been very buoyant, according to Gardner.
Early indications indicate that labour market conditions remain robust despite the furlough scheme ending at the end of September.
If this is maintained, housing market conditions may remain fairly buoyant in the coming months, particularly since the market has momentum and there is scope for ongoing shifts in housing preferences as a result of the Pandemic. But Gardner said that the outlook remains uncertain, with the impact of COVID-19 on the wider economy being unclear, while higher inflation is dragging down consumer confidence and potential higher interest rates are exerting a cooling influence. Martin Beck, senior economic advisor to the EY ITEM Club, said: In theory, stamp duty returning to pre-pandemic level on 1 October should have a bearing on house prices.
There are signs of cooling in housing market activity, but any stamp duty effect on values seems to have been countered by positives such as changing housing preferences and a strong jobs market. The figures came after Rightmove predicted that house prices would grow by 5% in 2022, a decrease from this year's increases.
The forecast sees prices go up due to strong buyer demand meeting historically low availability of property.
It points out factors such as more stretched buyer affordability, higher inflation and tax rises, and potential interest rate hikes, and more inflation and tax rises are weighing on buyer sentiment.