30 October 2026
If you are covering the latest Nationwide House Price Index, please find below a comment from Karen Noye, mortgage expert at Quilter:
“This morning’s Nationwide House Price Index reveals a housing market that continues to tread water, with annual price growth slowing to 0.5% in October, following no growth in the month and the average house price at £273,566. While demand for homes remains, stretched affordability and relatively expensive mortgages continue to limit how far buyers can go.
“The Budget had loomed large over the housing market in recent months and buyers and sellers now have greater clarity over the direction of government policy. However, that clarity comes with some significant changes for the housing market. The further two percentage point increase in property income tax from April 2027 will add to the pressures already facing landlords. That could further dampen appetite among buy-to-let investors and, over time, risks reducing the supply of rental properties if more landlords decide the sums no longer stack up.
“At the other end of the market, the new Our First Home scheme should provide a welcome helping hand to aspiring homeowners. A 20% equity loan, interest-free for five years, alongside a minimum deposit of just 2.5%, could bring home ownership within reach for buyers who can afford monthly mortgage payments but have struggled to build a sufficiently large deposit.
“However, government support can only do so much. Mortgage affordability remains the biggest piece of the puzzle. Buyers are still highly sensitive to monthly costs and, until borrowing becomes meaningfully cheaper, the housing market is likely to remain relatively subdued.
“The Budget therefore creates an interesting push and pull in the housing market. The government is giving first-time buyers a significant leg-up while simultaneously increasing the tax burden on landlords. How those measures feed through to prices, supply and demand will take time to become clear, but in the near term mortgage rates and household affordability are still likely to dictate the pace of the market.”
