UK house prices rose faster than expected in November, even as the pace of annual growth slowed, according to new data from Nationwide.

The average property now stands at £272,998, the building society said, with annual price growth easing to 1.8%, down from 2.4% in October. But on a monthly basis, prices climbed 0.3%, outperforming forecasts of a muted 0.1% increase.

Nationwide’s chief economist, Robert Gardner, said the figures underline the housing market’s recent “resilience”. Mortgage approvals remain close to pre-pandemic norms, he noted, and prices continue to edge up despite borrowing costs sitting at more than double their pre-Covid levels.

Gardner added that subdued consumer confidence and early signs of a softer labour market make the market’s steady performance “notable”.

He also downplayed the likely impact of the government’s newly announced property tax changes. The Budget introduced a council tax surcharge on homes valued above £2 million—a move swiftly dubbed a “mansion tax”—but Gardner stressed that only a small fraction of properties will be affected. However, higher taxes on rental income could tighten supply in the lettings sector, he warned.

Nationwide expects housing affordability to gradually improve next year, assuming wage growth continues to outpace house prices and interest rates begin to ease.

Analysts say the stronger-than-forecast November rise may signal that buyers who paused ahead of the Budget are returning to the market—potentially giving momentum to activity heading into 2026.