The UK Nationwide House Price Index rose 2.4% year-on-year in October 2025, above the expected 2.3% and up from 2.2% in September. On a monthly basis, prices increased 0.3%, beating forecasts of no change but easing from a 0.5% rise in the previous period. Nationwide’s Chief Economist Robert Gardner said the figures show a broadly stable market, noting resilience despite weak consumer confidence, early signs of labour market softening, and mortgage rates more than double pre-Covid levels, with prices near all-time highs. He added that steady mortgage approvals and ongoing demand from first-time buyers also support market stability. Gardner expects modest improvement in affordability if income growth outpaces house prices, aided by potential Bank Rate cuts, low unemployment, and strong household balance sheets, with debt-to-income ratios at a two-decade low. He sees housing activity gradually strengthening if the broader economy continues to recover steadily.
