Nationwide’s latest House Price Index shows an annual increase of 2.2% in September, marginally stronger than the 2.1% recorded in August.
‘The broad stability in the annual rate of house price growth over the past three months mirrors that of activity’, said Robert Gardner, Nationwide’s chief economist.
“The number of mortgages approved for house purchase have been hovering at around 65,000 cases per month, close to the pre-pandemic average (despite the higher interest rate environment).
“Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.
“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect.
“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”
Regionally, annual house price growth in England slowed to 1.6% from 2.5% in Q2. Average prices in Northern England (North, North West, Yorkshire & The Humber, East Midlands and West Midlands) were up 3.4% year on year, with the North (incorporating areas including Tyneside, Teesside and Cumbria) up 5.1% year on year making it the highest performing region in England.
Average house price growth in Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) slowed to 0.7%.
Wales saw a slight increase – up to 3.0% from 2.6% in Q2 – with Scotland dropping to 2.9% from 4.5% last quarter. Northern Ireland remained the strongest performer by a significant margin, with growth of 9.6% in Q3.
Industry reaction
Nathan Emerson, CEO at Propertymark:
“A sustained upward trend in house prices reflects a resilient and increasingly competitive housing market. This increase can be attributed to several key factors, including limited housing supply, strong buyer demand, and favourable lending conditions that continue to support purchasing activity despite broader economic uncertainties.
“On a macroeconomic level, the increase in prices is consistent with the ongoing imbalance between supply and demand. Construction activity in many regions has not kept pace with population growth and urban migration, exacerbating shortages, particularly in metropolitan areas. This supply constraint has intensified competition among buyers, placing upward pressure on prices.
“Additionally, while interest rates have seen moderate adjustments, they remain at their lowest since mid-2023, which continues to incentivise borrowing. Many prospective homeowners and investors are capitalising on this environment, further fuelling demand. While rising house prices reflect confidence in the housing sector, they also present challenges that require coordinated responses to maintain affordability and inclusivity across the market.”
Guy Gittins, CEO of Foxtons:
“UK house prices have continued to edge higher on both a monthly and annual basis, further demonstrating the resilience and consistency of the market, which has been the theme for much of 2025.
“Progress during the traditionally quieter summer months has been steady and, with the added stability of another base rate hold, the outlook for the remainder of the year remains positive, despite some uncertainty surrounding the upcoming budget.”
Verona Frankish, CEO of Yopa:
“Whilst we’re not seeing fireworks in terms of house price performance as we head into October, the overarching air of stability that has materialised in recent months suggests that market activity remains robust.
“We’re now entering a traditionally busy time of year, and the expectation is that this momentum will only build.”
Marc von Grundherr, director of Benham and Reeves:
“Another month of steady growth demonstrates the remarkable consistency of the UK property market.
“London, of course, remains the outlier and growth has been slower across the capital. However, even the most modest gains equate to thousands of pounds in real terms given the capital’s higher values.
“The message is clear: this is a market that refuses to stand still. While growth may not be headline-grabbing, it is sustainable, it is reliable, and it is happening in spite of seasonal distractions, interest rate speculation and political noise.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“The latest Nationwide figures highlight a housing market that remains resilient but finely balanced. Annual price growth of 2.2% in September shows little change from August, with month-on-month gains supported by easing borrowing costs and stronger wages. Yet, affordability remains stretched, and the marked rise in stock for sale is tempering upward momentum.
“Looking ahead, sentiment will hinge on the interplay between inflation, monetary policy, and potential housing tax reforms in the Autumn Budget. While the base rate cut in August provided some relief, persistently high inflation clouds the outlook for further reductions. Equally, speculation around new property taxes is creating some uncertainty in the market. For now, pragmatism is driving progress, and those who adapt quickest will move quickest.”
| UK Fact File (Q3 2025) | |
|---|---|
| Quarterly average UK house price | £272,819 |
| Annual percentage change | 2.3% |
| Quarterly change (seasonally adj.) | 0.4% |
| Most expensive region | London |
| Least expensive region | North |
| Strongest annual price change | N Ireland |
| Weakest annual price change | Outer S East |
Source: Nationwide
Nations summary table
| Nations | Average price
(Q3 2025) |
Annual % change this quarter | Quarterly % change |
|---|---|---|---|
| N Ireland | £215,122 | 9.6% | 3.2% |
| Wales | £213,359 | 3.0% | 0.7% |
| Scotland | £189,863 | 2.9% | 0.0% |
| England | £309,858 | 1.6% | 0.1% |
Source: Nationwide
See the full report at https://www.nationwide.co.uk/media/hpi/reports/annual-house-price-growth-steady-in-september-1
2 responses
‘providing broader economic recovery is maintained’
Sorry, what now?
Please permit me to inject some economic reality;
House prices are continuing to go up, as they have done for the last 15-20 years due to supply versus demand imbalance.
The backdrop for the last 15-20 years has been non-existent growth. GDP that is the equivalent of a patient on life-support.
Currently the situation remains that homes are becoming less affordable. Mortgage terms and acceptance criteria have had to be fiddled with constantly over the term in order that people may still borrow.
We seem to have lost common sense when appraising our situation.
A truly healthy market would see @350k homes per year being built against GDP and inflation running 2-3%. Wages rising in line.
And homes rising by no more than the same.
Albeit that to get there we’d now need a decade of 400k houses being built per year which would ensure home price increases being slightly lower than growth in a healthy economy
Conditions overall to get us back somewhere nearer fiscal strength. And responsible economics.
We built over 400k houses in 1969.
There is a precedent.
N.b
I find it abhorrent that our Housing market’s success is measured by price rises. Linking price rises with ‘performance’.
So far out of touch with the on the ground lived reality one can only imagine articles like this are written for the bourgeois champagne sipping career liberals to discuss while having dinner with reps from the big four builders.
Housing market resilience, success, nay health should, in any sane society be measured;
By velocity of transactions.
By numbers being built in balance (delicate) against demand.
By a stable matching of rises against salaries, against GDP.
This housing market is a long long way from the word ‘success’ being applied to it.
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