FX.co ★ UK House Prices Rise More Than Forecast

In September 2025, the UK Nationwide House Price Index demonstrated a year-on-year increase of 2.2%, surpassing the 2.1% growth observed in August and exceeding market expectations, which stood at 1.8%. On a monthly level, house prices experienced a 0.5% rise, outpacing the anticipated 0.2% increase and recovering from a modest 0.1% decline in the previous month. According to Robert Gardner, Chief Economist at Nationwide, the recent stability in house price growth mirrors consistent market activity. Mortgage approvals have averaged around 65,000 monthly—akin to pre-pandemic figures—despite higher interest rates. Gardner noted that several factors continue to support homebuyers, including low unemployment rates, robust earnings growth, healthy household balance sheets, and the potential for reduced borrowing costs if the Bank of England decides to relax monetary policy in the ensuing quarters. He anticipates a gradual strengthening in housing market activity, assuming that the broader economic recovery remains on track.