The UK Nationwide House Price Index rose 1.8% year-on-year in November 2025, above the expected 1.4% but slowing from October’s 2.4% gain, marking the softest annual growth since June 2024. On a monthly basis, prices increased 0.3%, compared to expectations of no growth and up from 0.2% in the prior period. Nationwide Chief Economist Robert Gardner noted resilience despite subdued consumer confidence, early signs of labour market weakness, and mortgage rates more than double pre-Covid levels, with prices near all-time highs. He added that steady mortgage approvals and ongoing demand, particularly from first-time buyers, support market stability. Gardner expects modest affordability improvements if income growth outpaces house prices, aided by potential Bank Rate cuts and strong household balance sheets. Housing activity is likely to remain steady, with limited impact from upcoming property tax changes and continued upward pressure on rental growth due to constrained supply.
