House prices rose 0.3% in October, marking a slight monthly increase and pushing annual growth to 2.4%, up from 2.2% in September, according to Nationwide’s latest House Price Index.
The average UK house price now stands at £272,226, compared with £271,995 the previous month.
The index rose to 544.3, up from 542.9 in September.
Alongside its latest housing data, Nationwide also reported that kitchen and bathroom renovations have been the most popular home improvements among UK homeowners over the past five years.
In addition, analysis of HPI data suggested that extensions or loft conversions adding an extra bedroom can increase a property’s value by up to 24%.
Robert Gardner, Nationwide’s chief economist, said: “The housing market has remained broadly stable in recent months, with house prices rising at a modest pace and the number of mortgages approved for house purchase maintained at similar levels to those prevailing before the pandemic struck.
“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 the level they were before Covid struck and house prices are close to all time highs.
“Looking forward, housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect. Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters.
“This should support buyer demand, especially since household balance sheets are strong – indeed, in aggregate the ratio of household debt to disposable income is at its lowest for two decades.”
Reaction:
Nathan Emerson, CEO at Propertymark:
“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.”
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 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.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“The housing market continues to demonstrate an underlying resilience in spite of the many challenges facing it, not least next month’s Budget.
“While the market is a little quieter as some adopt a ‘wait and see’ approach, lenders remain keen to lend and have the funds to do so. Falling Swap rates, which underpin the pricing of fixed-rate mortgages, have given added impetus to reduce rates, with Barclays and HSBC, among others, trimming their pricing in order to generate more business before the year end.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“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.
“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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“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.”
Tomer Aboody, director of specialist lender MT Finance:
“The housing market is the backbone of the UK economy, and even through the tough times, we are seeing a resilient market with buyers maintaining activity, albeit at a slower pace.
“The high cost of moving is 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 further underlines the case for the Chancellor to take action in her Budget to reduce or reform it, helping the market function more effectively.”
Jason Tebb, president of OnTheMarket:
“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.”
