Homeowners across the UK received a welcome financial update on Tuesday morning, as the Nationwide Building Society reported a £772 increase in the average house price during November.
Market Shows Surprising Resilience
According to the latest data from the UK's largest building society, the typical property value rose to £272,998 in November, up from £272,226 the previous month. This represents a monthly increase of 0.3% after seasonal adjustments. However, the annual rate of growth did soften slightly to 1.8%, compared to 2.4% in October.
Robert Gardner, Nationwide's Chief Economist, commented on the figures, stating: "The housing market has remained fairly stable in recent months, with house prices rising at a modest pace." He noted that mortgage approval levels are being maintained at rates similar to those seen before the pandemic.
Expert Views on Market Stability
Industry specialists have reacted to the data, highlighting the property market's continued strength despite economic headwinds. Darryl Dhoffer, Founder of Bedford-based The Mortgage Geezer, pointed to a fundamental lack of supply as a key supporting factor.
"Despite high interest rates, high inflation and an economy running on fumes, the property market has shown resilience in 2025," said Dhoffer. "The structural undersupply of property is underpinning the market and preventing prices from falling further."
This sentiment was echoed by Katy Eatenton, a Mortgage Specialist at Lifetime Wealth Management in St Albans. She remarked on the market's performance during a period of significant uncertainty ahead of the recent Budget. "December could see a rebound in demand and we are expecting a busy January," she predicted, as postponed transactions come back to the market.
Looking Ahead to 2026
While the immediate data is positive, some experts are calling for further action to stimulate activity. Michelle Lawson, Director at Fareham-based Lawson Financial, emphasised the housing market's central role in the wider economy. "2026 will need to start with an explosion of innovation to get things moving," she said, expressing hope for a cut in the Bank of England's base rate at the next Monetary Policy Committee meeting.
Nationwide's Robert Gardner offered a cautiously optimistic forecast. He suggested that housing affordability could improve modestly if wage growth continues to outpace house price growth. "Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters," he added, which should support buyer demand given that household balance sheets remain strong.
However, Justin Moy, Managing Director at EHF Mortgages in Chelmsford, described a market that has been "treading water" as buyers awaited clarity from the Budget. He characterised the period as a "lost quarter" for the property market, which now enters its traditional seasonal slowdown over the Christmas period.
