British house prices jumped 1.4 per cent this month to take the annual increase up to 9.6 per cent, the Nationwide Building Society reported today.
That was nearly twice the monthly rise of 0.8 per cent in October, when prices were 8 per cent higher on the year and suggests 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 per cent, but several expect another quarter-point rise early next year, and financial markets are pricing in a 50 per cent chance of another rise.
Nationwide said the average price of a home stood at £172,185 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.