British house prices surged again in December as the property market upswing continued, surprising economists who had expected to see a slowdown in price growth.

That’s according to data from mortgage lender Nationwide.

House prices jumped by 0.7% in monthly terms during December, following a 1.2% increase in November, Nationwide said.

A Reuters poll of economists had pointed to a 0.1% month-on-month increase.

House prices ended the year 4.7% higher than their level of December 2023, up from 3.7% in November – the highest annual growth rate since late 2022.

The Nationwide survey fits with a slew of stronger than expected housing market data, contrasting with other indicators that point to weakening activity across the wider economy.

“Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers,” said Robert Gardner, chief economist at Nationwide.

The building society stuck to its view that house prices were likely to rise in 2025 by 2% to 4% – with activity likely to be stronger in the first half of the year ahead of an increase in property transaction taxes in April.