31 October 2025
Nationwide’s latest figures show UK house prices edged up 0.3% in October, leaving the average property valued at £272,226. Prices are now 2.4% higher than a year ago, marking a modest improvement that hints at resilience in the face of persistent economic uncertainty.
After a subdued first half of the year, the housing market appears to be finding its feet. A gentle uptick in prices reflects a degree of confidence returning among buyers and sellers, supported by greater stability in mortgage rates and growing expectations that interest rates have now peaked. However, the optimism remains fragile. With the Budget looming and rumours swirling about possible housing tax changes, many buyers are taking a cautious approach, waiting to see whether the goalposts are about to shift.
Inflation is still uncomfortably high for the Bank of England, but signs of cooling price pressures elsewhere could open the door to rate cuts next year. That would provide some long-awaited relief for borrowers, although affordability pressures remain significant for first-time buyers, who are still grappling with high deposits and mortgage repayments that swallow a large share of income.
If the Chancellor uses the Budget to target wealthier homeowners or property investors, that could stall activity at the top of the market, which often sets the tone for the rest of the housing ladder. For now, though, the market appears to be holding its balance, with low supply providing a natural floor for prices even as demand remains constrained.
The message from October’s data is one of quiet resilience. The housing market has weathered a year of volatility and high borrowing costs, and while there is little sign of a rapid rebound, the gradual improvement in sentiment shows buyers are beginning to believe the worst may be behind them.
