UK house prices rose modestly in October, with annual growth edging up to 2.4% from 2.2% in September, according to the latest Nationwide House Price Index. Prices were 0.3% higher month-on-month, taking the average home value to £272,226.
Alongside its price data, Nationwide found that 71% of homeowners who renovated in the past five years focused on kitchens or bathrooms, while 42% added a new bathroom or ensuite.
Around a third (34%) made green improvements, most commonly solar panels, which now feature on nearly 6% of English homes – double the level in 2013.
Younger owners are leading the shift toward sustainable upgrades, with 69% of those aged 25–34 opting for green improvements. For older homeowners, bathroom upgrades remain the most popular choice.
BROADLY STABLE
Robert Gardner, Nationwide’s Chief Economist, says: “The housing market has remained broadly stable in recent months, with prices rising at a modest pace and mortgage approvals similar to pre-pandemic levels.
“Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double pre-Covid levels and prices are close to record highs.”
Gardner adds that affordability should “improve modestly” in the coming months if income growth continues to outpace house prices and borrowing costs ease further with potential Bank Rate cuts.
“This should support buyer demand, especially since household balance sheets are strong – the ratio of household debt to disposable income is at its lowest for two decades,” he says
INDUSTRY REACTION
Jason Tebb, President of OnTheMarket, says: “While there is much uncertainty, not least surrounding next month’s Budget, the housing market continues to demonstrate resilience. Activity is steady as focused buyers and sellers proceed with their transactions.
“While annual house price growth edges higher, values are being held in check to an extent as buyers find themselves in a strong position, which they are using to negotiate on price.
“While mortgage rates are higher than they were pre-pandemic, affordability challenges continue to ease. While the Bank of England held base rate at last month’s meeting, this has created a feeling of stability with the suggestion of more reductions to come once the rate setters are certain that inflation has peaked.
“In the meantime, a number of lenders are reducing their mortgage rates on the back of falling Swap rates, along with easing criteria, which should further assist with affordability.”
BUYERS HEDGING BETS
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “This historically reliable indicator of market health mirrors recent strong mortgage approvals and steady growth, which is what we are seeing in our offices.
“Expectations of a modest rebound at least if Budget speculation does not prove as harmful as many expect has stirred a little more activity recently.
“Some buyers are hedging their bets to try to agree terms and before exchanging in early December if possible without fear of additional competition and possibly higher prices once the Chancellor’s intentions are known.”
REALISM IS KEY
Iain McKenzie, Chief Executive of The Guild of Property Professionals, says: “The latest Nationwide figures point to a housing market that’s regaining its footing.
“A modest rise in annual house price growth to 2.4% and a 0.3% monthly increase underline the resilience we’ve seen building throughout 2025, supported by improving buyer confidence and easing mortgage rates.
“While higher supply levels and ongoing geopolitical and economic uncertainty suggest a steady rather than spectacular trajectory ahead, the fundamentals remain encouraging.
“The combination of a wider choice of homes, rising real wages, and a lower base rate environment is helping to stabilise affordability and sustain buyer activity. We’re also seeing a tangible lift in mortgage approvals, which is often a leading indicator of increased transaction volumes in the months to come.
“Much will hinge on the Autumn Budget.”
“That said, realism is key in today’s market. With more stock available and buyers having greater choice, sellers who price sensibly are achieving faster sales and better outcomes. The fact that one in three properties has required a price adjustment highlights the importance of aligning expectations with current market conditions.
“Looking forward, we expect growth to remain modest but consistent through the end of the year. Much will hinge on the Autumn Budget and any policy measures affecting housing or taxation. While short-term caution is understandable, the medium-term picture looks increasingly positive as stability returns, and mortgage flexibility improves.”
SLUGGISH MARKET
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 remains sluggish, particularly at the higher end, as buyers and sellers sit 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 is freezing activity and costing the Treasury in lost stamp duty.
“Any talk of a mansion tax or further property levies risks inflicting real damage. Bringing in another tax layer, and the red tape that comes with valuing such properties, would create huge administrative costs, push some homeowners into negative equity and risk a self-inflicted crisis in the high-end market.”
STEADY MOMENTUM
Guy Gittins, Chief Executive of Foxtons, says: “The latest Nationwide figures suggest that the housing market momentum has remained steady, with further upward price growth on both a monthly and annual basis reflecting cautious confidence within the market.
“With inflation holding firm at 3.8% for the third consecutive month, the prospect of a base rate cut before Christmas remains on the table.
“This will only help to boost current market sentiment, so any ‘wait-and-see’ approach adopted by buyers ahead of the upcoming Autumn Budget is likely to be short lived.
“As the year closes out, we expect market activity to strengthen in line with traditional seasonal trends, as motivated buyers and sellers push to complete before year-end or start 2026 on a positive footing.”
BUDGET CONCERNS
Nathan Emerson, Chief Executive at Propertymark, says: “As the year continues to unfold, we have seen challenges and achievements in almost equal measure. It is positive for those on the housing ladder to see them accumulate more equity. However, the flip side is that it remains ever more demanding for first-time buyers to attain a foothold on their housing journey.
“Three base rate dips have helped increase consumer affordability; however, we still have a rate of inflation that is near double what the Bank of England is hoping for.
“We have seen stamp duty threshold changes disrupting sales trends for those in England and Northern Ireland earlier this year, and we now have the Autumn Budget just around the corner which may influence the smooth flow of property transactions, with many people holding out to see what changes may potentially be announced.”
TWO-SPEED MARKET
Tom Bill, Head of UK Residential Research at Knight Frank, says: “Mortgage rates have been stable for a number of months, which has supported demand and put upwards pressure on house prices.
“However, a two-speed market has been created as the Budget approaches, with prices falling in higher-value areas due to uncertainty over property taxes. The risk is that momentum is gradually sapped from the wider market after 26 November.”
