UK house price growth slowed in November, according to the latest Nationwide House Price Index, though modest monthly gains suggest the market remains stable despite higher borrowing costs and weakening economic sentiment.
Annual price growth eased to 1.8%, down from 2.4% in October. On a seasonally adjusted basis, prices rose 0.3% month on month, compared with a 0.2% increase the previous month. The average UK home now costs £272,998, up from £272,226 in October.
Robert Gardner, Nationwide’s chief economist, says the figures point to a market that has “remained fairly stable in recent months”, with house prices rising at a steady pace and mortgage approvals holding close to pre-pandemic levels.
“Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience,” he adds. “Mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs.”
RENTAL SUPPLY ISSUES
Gardner says the property tax changes announced in the Budget are unlikely to have a significant effect on the wider market. The high-value council tax surcharge – due to take effect in April 2028 – will apply to fewer than 1% of homes in England and around 3% in London.
However, he warns that higher taxes on property income could weigh on rental supply.
“Rental supply has been constrained for some time, with the potential for this to maintain upward pressure on rental growth, which has been running at all-time highs.”
Looking ahead, Nationwide expects affordability to improve gradually if wage growth continues to outpace house price growth. Borrowing costs may ease further if the Bank of England cuts rates in the coming quarters.
“This should support buyer demand, especially since household balance sheets are strong,” Gardner said. “In aggregate, the ratio of household debt to disposable income is at its lowest for two decades.”
INDUSTRY REACTION
Nathan Emerson, Chief Executive of Propertymark, says: “With so much anticipation built up ahead of the Autumn Budget and continued uncertainty affecting both homeowners and landlords, an easing in house price growth annually is unsurprising.
“Economic anxiety has clearly influenced decision-making, and the market has responded accordingly.
“Even so, the priority now is to fully restore stability heading into the New Year.
“Expected stamp duty reforms were shelved last month, and the thresholds introduced in April have, according to many reports, contributed to weaker prices throughout 2025.”
REBUILDING CONFIDENCE
And he adds :“With more clarity now available on the incoming mansion tax, we hope this will help rebuild confidence among those looking to move.
“However, a slight uplift in house prices month on month is a positive sign given the crucial role that housing plays in driving the UK economy. A confident and active market supports wider economic growth, which is welcome at this point in the year.
“With inflation likely to ease in the coming months, consumer affordability should gradually improve. When the economic position allows, further reductions in interest rates will help revitalise mortgage lending and support a healthier market.”
ENCOURAGING OUTLOOK
Guy Gittins, Chief Executive of Foxtons, says: “Despite the uncertainty surrounding the Autumn Budget, the market has remained resilient.
“With Budget-related uncertainty now behind us and no changes to property taxes for the vast majority of the market, confidence is expected to rebuild as more households feel ready to resume their moving plans over the coming months.
“As we head into the New Year, the outlook is encouraging. Underlying demand remains strong, and this should help support activity as buyers and sellers re-engage.”
BUYERS SAT ON THEIR HANDS
Tom Bill, Head of UK Residential Research at Knight Frank, says: “UK house prices have essentially been flat since the pre-Budget speculation began in the summer.
“Like many other parts of the economy, buyers sat on their hands until there was more clarity.
“Property-specific tax hikes are unlikely to affect house prices, particularly in the short-term, but the array of other rises will eventually take their toll.
“The good news is that mortgage rates should continue to edge lower as the Bank of England lowers rates into next year and the base rate bottoms out at around 3.25%.”
PRE-BUDGET PARALYSIS
Shepherd Ncube, Chief Executive of Springbok Properties, says: “Despite a surprise monthly increase in the rate of house price growth, wider market conditions remain tough and the Autumn Budget has done nothing to help negate this fact.
“The market has been in a state of pre-Budget paralysis for many months and with the Government doing little to change this, we can expect the property market to limp to the finish line and start 2026 on the backfoot.
“Transaction timelines are likely to remain slow and frustratingly unreliable. For sellers who need to progress their plans in 2025 or early 2026, the risk is clear: delays will continue, and many will find themselves having to accept below-market offers if they want any chance of completing.”
AFFORDABILITY CHALLENGES EASING
Jason Tebb, President of OnTheMarket, says: “While there was uncertainty for an extended period in the run-up to the Budget, the housing market continues to demonstrate resilience.
“Activity may have been subdued and steady but focused buyers and sellers continue to proceed with their transactions.
“With a slight softening in annual house price growth, values are being held in check as buyers find themselves in a stronger position, which they are using to negotiate on price.
“Affordability challenges, while still present, continue to ease as lenders reduce rates in an effort to win business in what has been a quieter market in the run up to the end of the year.
“The rock-bottom mortgage rates of the past may be behind us, but borrowers have adapted, and with the hope of further base-rate reductions to come, they can plan ahead with more confidence.”
MODEST REBOUND
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “Nationwide’s numbers paint the picture of a fairly stable market, despite lower confidence in the run-up to the Budget.
“However, as this survey reflects only customer activity and doesn’t include cash purchases, it may be timely but isn’t the most comprehensive of reports.
“With the property measures in the Budget not proving to be as harmful as some of the kite flying beforehand had indicated, expectations of a modest rebound are stirring a little more activity.
“With an earlier base rate cut more likely as the Bank of England gets a better hold on inflation, this may help encourage buyers and sellers to return to the market in January with more purpose.”
QUIET RESILIENCE
Iain McKenzie, CEO of The Guild of Property Professionals, says: “Nationwide’s latest figures reflect a market that continues to demonstrate quiet resilience.
“While annual house price growth softened slightly to 1.8% in November, the fact that prices still rose 0.3% month on month underlines the underlying stability we’ve seen throughout the second half of the year.
“One of the factors keeping price growth modest is the rise in the number of homes coming to market compared with last year. Buyers now have more choice than they’ve had in years, which is helping to keep price pressures in check and encouraging more realistic, grounded negotiations on both sides.
“Importantly, this data captures a period when many potential movers were holding their breath ahead of the Autumn Budget.
“With so much speculation around possible housing reforms, some paused plans temporarily. Now that the Budget has passed, buyers and sellers will be able to move forward with more clarity.
“Despite the uncertainty, the market held up well, supported in large part by needs-based movers, who tend to drive activity outside the prime price bands. Their continued presence is reflected in the latest transaction numbers, with seasonally adjusted sales rising 2% between September and October to reach their highest level since March.
“Looking ahead, there is room for cautious optimism.”
“Looking ahead, there is room for cautious optimism. Affordability should gradually improve as wage growth continues to outpace house price rises, and if inflation remains on its current trajectory, we may see the Bank of England begin reducing rates in the coming months, potentially as early as its next meeting.
“Any easing in borrowing costs would provide a welcome boost to both sentiment and activity as we head into the new year.
“Overall, the message from this latest data is clear: the market remains stable, active, and grounded, supported by solid fundamentals and a growing sense of confidence after a period of uncertainty.”
ENGAGED BUYERS
Verona Frankish, Chief Executive of Yopa, says: “A monthly increase in property values between October and November demonstrates just how robust the housing market has been, during a year that has been anything but settled when taking a wider view of the economic landscape.
“Buyers remain engaged, market activity is holding firm, and the market continues to move forward.
“Annual price growth remains consistently positive, which is the clearest indication of long-term market strength.
“Although the Budget offered little direct support, 2025 has proven that the market can perform strongly under its own momentum, leaving us well positioned as we move into 2026.”
LATE-SEASON SURGE
Marc von Grundherr, Director of Benham and Reeves, says: “The fact that house prices posted positive monthly growth in November, even with intense Budget speculation hanging over the market, shows just how stable and resilient conditions have remained throughout 2025.
“This suggests the early formation of a late-season surge that often materialises as buyers and sellers push to put their plans to move in motion ahead of the New Year.”
UNCERTAIN IMPACT
James Nightingall, founder of HomeFinder AI, says: “In November, a vast proportion of house hunters put their search on hold to first evaluate how the Budget will affect them.
“This resulted in sales falling through but also created opportunities as developers promoted incentives and some sellers lowered their asking price.
“The new mansion tax on homes valued over £2 million may encourage some discretionary sellers to list early, which could increase supply at the top end of the market.
“While the full impact is uncertain, buyers may benefit from a short-term increase in choice before the market stabilises.”
LONDON PROPERTY TIED TO POLITICS
Amy Reynolds, Head of Sales at Richmond estate agency Antony Roberts, says: “While Nationwide reports little change in average house price data, on the ground the property market was sluggish in November, particularly at the higher end, as buyers and sellers sat tight ahead of the Autumn Budget.
“London property is directly tied to politics and the wider economy, and the drawn-out uncertainty over potential tax changes froze activity and would have cost the Treasury in lost stamp duty.
“Unfortunately, post-Budget nothing is cheaper, particularly stamp duty, so the pressure on the London market remains as before and will do so until there is intervention to stimulate the market.”
