FTSE 100 Live 02 December: House prices surge, China factory output beats hopes
07:29 , Graeme Evans
House prices surged by more than expected last month after Nationwide recorded the largest monthly increase since March 2022.
The 1.2% monthly rise means the price of a typical UK home is 3.7% higher year-on-year, up from the previous month’s 2.4% and the fastest rate for two years.
The building society recorded an average house price of £268.144, with the headline figure now 1% below the all-time high seen in the summer of 2022.
Chief economist Robert Gardner said: “The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels.”
He added that housing market activity has been relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic.
Gardner added: “Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year.
“Household balance sheets are also in good shape with debt levels at their lowest levels relative to household income since the mid-2000s.”
07:00 , Graeme Evans
Asia markets are trading higher after China manufacturing figures beat expectations with the best performance since June.
The Caixin China General Manufacturing index reading of 51.5 compared with October’s 50.3.
The upturn in factory output helped boost the Shanghai Composite by 1%, while the Hang Seng index stands 0.4% higher.
The FTSE 100 index is forecast to rise by four points to 8291, having closed Friday’s session six points higher.
The pound stands at just above $1.27, while Brent Crude is trading at $72.51 a barrel and Bitcoin at $96,357.