UK House Prices Rise Above Forecasts

In October 2025, the UK Nationwide House Price Index experienced a 2.4% increase compared to the previous year, surpassing the anticipated 2.3% and rising from 2.2% in September. On a month-to-month basis, house prices increased by 0.3%, outperforming predictions of stagnation, although this was a reduction from the 0.5% growth recorded in the prior month. According to Robert Gardner, Nationwide’s Chief Economist, these figures indicate a generally stable housing market. He highlighted the market’s resilience despite factors such as low consumer confidence, emerging signs of a weakening labor market, and mortgage rates that are more than double the levels seen before the Covid-19 pandemic, with prices almost reaching all-time highs. Gardner noted that steady mortgage approvals and sustained demand from first-time buyers contribute to market stability. He anticipates a slight improvement in affordability if income growth exceeds house price increases, supported by possible reductions in the Bank Rate, low unemployment, and robust household balance sheets, with debt-to-income ratios at their lowest in two decades. Gardner forecasts that housing market activity will gradually strengthen, assuming a steady recovery in the broader economy.

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