"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"
- Robert Gardner - Nationwide
Annual house price growth slowed to 1.8% in November, according to Nationwide, while prices increased 0.3% month on month.
Monthly change
November: 0.3%
October: 0.2%
Average price (not seasonally adjusted): £272,998 (October: £272,226)
Commenting on the figures, 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.
“The housing market has remained fairly 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."
“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."
“The changes to property taxes announced in the Budget are unlikely to have a significant impact on the housing market. The high-value council tax surcharge, which is not being introduced until April 2028, will apply to less than 1% of properties in England and around 3% in London. (The chart below shows the share of property transactions by value band, which is a good proxy for the housing stock.)"
“The increase in taxes on income from properties may dampen the supply of new rental properties coming onto the market. Rental supply has been constrained for some time, with the potential for this to maintain upward pressure on rental growth, which has been running at all-time highs in recent years."
“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.”
Industry reactions
Tom Bill, head of UK residential research at Knight Frank, said, “UK house prices have essentially been flat since the pre-Budget speculation began in the summer. Like many other parts of the economy, buyers sat on their hands until there was more clarity. Property-specific tax hikes are unlikely to affect house prices, particularly in the short-term, but the array of other rises will eventually take their toll."
"The good news is that mortgage rates should continue to edge lower as the Bank of England lowers rates into next year and the base rate bottoms out at around 3.25%.”
Guy Gittins, ceo of Foxtons, commented, “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, said, “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, commented, “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, commented, "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.”
Karen Noye, mortgage expert at Quilter, said, "Nationwide HPI shows house prices rose by around 0.3% this month, but left annual growth slightly lower at 1.8%. This reflects a market that has been treading water. Most of November was dominated by budget rumours, and many buyers simply waited to see what the Chancellor would do. The confirmation of a mansion tax will matter most to the top end, but the speculation alone about what might have appeared in the budget had already stalled decisions.
"With the budget out of the way, the focus now shifts back to interest rates. Inflation is easing and markets think a December rate cut is a possibility. Even if the Bank of England holds off until the new year, expectations of lower rates have already fed into swaps, and lenders have started to trim fixed-rate mortgages. Any fall in borrowing costs is crucial for first-time buyers who are still facing the toughest affordability conditions in years.
"Former owner-occupiers with more equity behind them are in a slightly stronger position, but this group also slowed activity during the budget standstill. Confidence will depend heavily on how mortgage rates behave over the next few weeks.
"New build prices remain softer as developers continue to use incentives to secure sales, while existing homes have held their ground more firmly, albeit with lower transaction volumes.
"Overall, this is still a market that is stable but subdued. The removal of budget uncertainty helps, but buyers will only return in greater numbers if mortgage rates continue to drift down. If inflation keeps falling and lenders sharpen pricing further, we could see activity pick up in the new year, but a rapid rebound is unlikely.”
