House prices climbed by 1.2% in November versus the previous month.

On an annual basis they increased by 3.7%, with this annual rate of growth accelerating from 2.4% the previous month.

This marked the fastest rate of house price growth in two years, with house prices now just 2% off the record highs seen in summer 2022.

Many consider the surge is likely to be the result of first time buyers – many of them tenants – deciding that now is the time to purchase, before stamp duty changes next year make buying more expensive.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “We are seeing prices hardening and stock levels rising, partly because the Budget, though not particularly helpful, was not as bad as many feared either.

“As a result, some pent-up demand was released and buyers are digging a little deeper. That extra choice, as well as broad acceptance that inflation and mortgage rates will not reduce as far and as fast as many expected, has meant caution still prevails. 

“Transaction lengths are extending too, particularly bearing in mind the seasonal distractions so sellers still need to be extra competitive to attract serious attention at this time of year.”

Foxtons chief executive Guy Gittins says: “This consistent positivity demonstrates the current strength of the market despite the complications posed by wider economic headwinds. 

“Over the last 12 months we’ve seen a huge increase in new buyer volumes, viewings and offers made and there is a very healthy level of stock currently on the market.“

And the director of Benham and Reeves, Marc von Grundherr, comments: “Nothing supercharges the property market quite like a stamp duty deadline and with the government confirming that the countdown is now on, buyers have flooded the market in hope of completing on a purchase before April next year.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, adds: “Inflation creeping back up is not the required backdrop for aggressive rate cuts, and with the Budget expected to fuel inflation further, this may slow down activity in the market as hard-pressed borrowers who are struggling with affordability wait for rates to come down further.

“Swap rates have slipped back in the past few days but most lenders are still repricing upwards. Borrowers looking for a mortgage should speak to a whole-of-market broker to find the best deal available to them.”