Nationwide has reported a slight cooling in annual house price growth, which eased to 1.8% in November from 2.4% in October.
After seasonal adjustment, prices rose 0.3% month on month, up from 0.2% in October, taking the average (unadjusted) UK house price to £272,998.
Robert Gardner, Nationwide’s chief economist, said: “November saw a slight softening in the rate of annual house price growth to 1.8%, from 2.4% in October.
However, prices increased by 0.3% month on month, after taking account of seasonal effects.”
He added that the market had remained “fairly stable in recent months”, with approvals and pricing sitting close to levels recorded before the pandemic.
Gardner said the figures pointed to resilience given “subdued consumer confidence and signs of weakening in the labour market”, alongside mortgage rates that remain more than double pre-Covid levels.
He noted that the Budget’s property tax changes would have little effect on the wider housing market, with the high value council tax surcharge applying to less than 1% of homes in England and around 3% in London when introduced in 2028.
He warned, however, that higher taxes on property income could further restrict rental supply, at a time when strong demand has kept rental growth at record levels.
Looking ahead, Gardner said affordability should “improve modestly” if wage growth continues to outpace house price inflation and borrowing costs ease in line with expectations of future Bank Rate reductions.
Karen Noye, mortgage expert at Quilter, said November’s 0.3% rise reflected a market “treading water”, with budget speculation causing many buyers to pause activity.
She added that confirmation of a mansion tax “will matter most to the top end, but the speculation alone had already stalled decisions”.
Noye said attention had now shifted back to interest rates as inflation continues to ease. She said expectations of lower Bank Rate had already filtered into swap rates, prompting lenders to reduce fixed-rate pricing. “Any fall in borrowing costs is crucial for first time buyers who are still facing the toughest affordability conditions in years,” she said.
She noted that confidence among former owner occupiers had also slowed during the budget lull, while developers continued to use incentives to support new-build sales.
Existing homes, she said, had “held their ground more firmly”, though market activity remained muted.
Noye concluded that the market was “stable but subdued”, with any recovery dependent on continued downward movement in mortgage rates.
Further reaction
Tomer Aboody, director of specialist lender MT Finance:
“The housing market is the backbone of the UK economy, and even through the tough times with a looming Budget that was feared to have the potential to be hugely damaging, we are seeing a resilient market with buyers and sellers maintaining activity, albeit at a slower pace.
“The high cost of moving is still there, however, and putting off many from doing so, choosing to stay put and improve existing homes instead. Stamp duty in particular is a barrier to mobility, and with the Chancellor missing an opportunity to reduce or reform it in her Budget, the hope is for more interest rate reductions in the new year to encourage transactions and to enable the housing market to function more effectively.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“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.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“The housing market continues to demonstrate underlying strength in spite of the many challenges facing it, not least the speculation surrounding the Budget, which in the end didn’t turn out to be as bad as many had feared.
“While the market has been a little quieter as some adopted a ‘wait and see’ approach, lenders have remained keen to lend, with funds available to do so. Falling Swap rates, which underpin the pricing of fixed-rate mortgages, have given added impetus to reduce rates and drum up business at a time when there has been less of it around.
“With talk of another base-rate reduction this month, borrowers may be tempted to hold on in the hope of cheaper rates to come but those concerned about budgeting and rate rises might wish to consider locking into a cheaper rate now several months ahead of when they might need it. Then, when they come to take out the mortgage, if rates have fallen further, their broker should help you move onto a cheaper deal; if rates have risen, they will be glad they locked in when they did.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“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.”
Nathan Emerson, CEO of Propertymark:
“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. 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.”
Guy Gittins, CEO of Foxtons:
“The latest Nationwide figures show that, 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.”
Verona Frankish, CEO of Yopa:
“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.”
Marc von Grundherr, director of Benham and Reeves:
“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.”
Shepherd Ncube, CEO of Springbok Properties:
“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.”
