FX.co ★ UK House Price Growth Exceeds Forecasts

In November 2025, the UK Nationwide House Price Index demonstrated a 1.8% year-on-year increase, surpassing the anticipated 1.4%, but decelerating from the 2.4% rise observed in October. This represents the most modest annual growth since June 2024. On a monthly scale, house prices edged up by 0.3%, exceeding expectations of stagnation and improving from the previous month's 0.2% rise. Robert Gardner, Nationwide's Chief Economist, highlighted the market's resilience amid low consumer confidence, early indicators of labor market weakness, and mortgage rates remaining over twice as high compared to pre-Covid levels, while home prices hover near record highs. Gardner observed that steady levels of mortgage approvals and strong demand, particularly among first-time homebuyers, underpin market stability. He anticipates that affordability may see slight improvements if wage growth outpaces house price increases, which may be facilitated by potential reductions in the Bank Rate and robust household financial standings. Housing market activity is predicted to maintain stability, with minimal effect expected from imminent property tax amendments and continued upward pressure on rental prices as supply remains restricted.