House prices in the UK recorded their highest annual growth in nearly two years in November, reflecting continued strength in the housing market despite elevated borrowing costs, according

to official data released on Wednesday (Jan 15).

The Office for National Statistics (ONS) reported that average house prices increased by 3.3% in the 12 months leading up to November, the fastest rise since February 2023. This follows a downwardly revised 3.0% increase in October.

Meanwhile, private-sector rents in December were up 9.0% compared to the same period a year earlier, slightly below the 9.1% increase reported in November.

London saw the highest regional rent growth in England, with average rents climbing by 11.5%.

Following a surprise drop in inflation earlier on Wednesday, investors increased their expectations for Bank of England interest rate cuts in 2025.