The was a slight enhance in annual home value progress to 2.4% this month, based on Nationwide’s October Home Worth Index.
October noticed a slight rise within the fee of annual home value progress to 2.4%, from 2.2% in September. Costs elevated by 0.3% month on month, after taking account of seasonal results.
| Headlines | Oct-25 | Sep-25 |
|---|---|---|
| Month-to-month Index* | 544.3 | 542.9 |
| Month-to-month Change* | 0.3% | 0.5% |
| Annual Change | 2.4% | 2.2% |
| Common Worth
(not seasonally adjusted) |
£272,226 | £271,995 |
Robert Gardner, Nationwide’s chief economist, mentioned: “The housing market has remained broadly secure in latest months, with home costs rising at a modest tempo and the variety of mortgages permitted for home buy maintained at comparable ranges to these prevailing earlier than the pandemic struck.
“Towards a backdrop of subdued client confidence and indicators of weakening within the labour market, this efficiency signifies resilience, particularly since mortgage charges are greater than double the extent they have been earlier than Covid struck and home costs are near all time highs.”
Trying ahead, Gardner believes that housing affordability is probably going to enhance modestly if revenue progress continues to outpace home value progress as we anticipate. Borrowing prices are additionally more likely to average somewhat additional if Financial institution Price is lowered once more within the coming quarters.
“This could help purchaser demand, particularly since family stability sheets are sturdy – certainly, in combination the ratio of family debt to disposable revenue is at its lowest for 20 years,” Gardner added.
What are the preferred dwelling renovations?
Nationwide’s newest analysis discovered that kitchen and bogs renovations have been the preferred amongst owners who’ve made enhancements to their dwelling within the final 5 years, with 71% endeavor both, or each, of those.
Greater than two in 5 (42%) added a rest room or an ensuite, while 25% added a further rest room.
Of these endeavor work, round a 3rd (34%) made inexperienced enhancements to their property, with over half of those (56%) including photo voltaic panels. As we explored in our latest particular report on the housing inventory, photo voltaic panels have gotten an more and more well-liked function, with practically 1.5 million dwellings in England having photovoltaic (PV) panels, equating to almost 6% of complete dwellings (up from lower than 3% in 2013).
“Youthful owners seem like most excited by greening their properties, with over two thirds (69%) of these aged 25 to 34 who had renovated within the final 5 years making inexperienced enhancements. Older owners (these aged 55 or above) have been least more likely to have made inexperienced enhancements (simply 18%), with lavatory renovation being the preferred amongst this demographic (68% of those that had made enhancements opted for this).
“The preferred purpose for renovating was to make the property look nicer (54%), whereas 35% have been trying to increase the worth of their property, with the latter being a very powerful issue for youthful owners. 32% of these surveyed made enhancements to modernise the property to make it liveable, whereas 26% have been trying so as to add extra space. Curiously, simply 7% have been renovating in preparation for a sale.
What provides probably the most worth?
Nationwide has used its home value knowledge to take a look at the components that have an effect on the values of properties in addition to the potential so as to add value2. Whereas we will’t establish the worth related to kitchen and toilet renovations, we’re in a position to discover the influence of extra substantial initiatives, notably these which enhance the dimensions of the property.
It discovered that location stays key to accommodate values, however different components, such because the variety of bedrooms, are additionally necessary to homebuyers. House enhancements that enhance the dimensions of the property, reminiscent of an extension or loft conversion, stay a compelling approach so as to add worth.
Worth added
Having extra useable area is mostly considered in line with higher high quality lodging and individuals are ready to pay for it. A ten% enhance in flooring area, all issues equal, provides 5% to the worth of a typical home. However our evaluation means that it’s further bedrooms which are key to including worth. For instance, including area to create a further double bed room can add 13% to the worth of an current two-bedroom home.
“Householders that add a loft conversion or extension, incorporating a big double bed room and toilet, can add as a lot as 24% to the worth of a three-bedroom, one-bathroom home, Nationwide mentioned.
Business response to the most recent home value knowledge:
Man Gittins, CEO of Foxtons: “The most recent Nationwide figures recommend that the housing market momentum has remained regular, with additional upward value progress on each a month-to-month and annual foundation reflecting cautious confidence throughout the market.
“With inflation holding agency at 3.8% for the third consecutive month, the prospect of a base fee lower earlier than Christmas stays on the desk. This may solely assist to spice up present market sentiment, so any ‘wait-and-see’ method adopted by consumers forward of the upcoming Autumn Finances is more likely to be brief lived.
“Because the yr closes out, we anticipate market exercise to strengthen in step with conventional seasonal developments, as motivated consumers and sellers push to finish earlier than year-end or begin 2026 on a optimistic footing.”
Tom Invoice, head of UK residential analysis at Knight Frank: “Mortgage charges have been secure for various months, which has supported demand and put upwards stress on home costs. Nevertheless, a two-speed market has been created because the Finances approaches, with costs falling in higher-value areas resulting from uncertainty over property taxes. The danger is that momentum is step by step sapped from the broader market after 26 November.”
Verona Frankish, CEO of Yopa: “A double deal with for owners this Halloween, with home costs up on each a month-to-month and annual foundation and no signal but of an Autumn Finances-induced trick.
“The market will not be transferring on the velocity of earlier years, however this regular upward momentum underlines the energy of demand that continues to drive values greater.”
Nathan Emerson, CEO at Propertymark: “Because the yr continues to unfold, we’ve seen challenges and achievements in virtually equal measure. It’s optimistic for these on the housing ladder to see them accumulate extra fairness. Nevertheless, the flip aspect is that it stays ever extra demanding for first-time consumers to realize a foothold on their housing journey.
“Three base fee dips have helped enhance client affordability; nevertheless, we nonetheless have a fee of inflation that’s close to double what the Financial institution of England is hoping for. We now have seen Stamp Obligation threshold modifications disrupting gross sales developments for these in England and Northern Eire earlier this yr, and we now have the Autumn Finances simply across the nook which can affect the sleek move of property transactions, with many individuals holding out to see what modifications might doubtlessly be introduced.”
Jeremy Leaf, north London property agent: “This traditionally dependable indicator of market well being mirrors latest sturdy mortgage approvals and regular progress, which is what we’re seeing in our places of work.
“Expectations of a modest rebound a minimum of if Finances hypothesis doesn’t show as dangerous as many anticipate has stirred somewhat extra exercise not too long ago. Some consumers are hedging their bets to attempt to agree phrases and earlier than exchanging in early December if attainable with out concern of further competitors and presumably greater costs as soon as the Chancellor’s intentions are recognized.”
James Nightingall, founding father of HomeFinder AI: “The vast majority of home hunters are stalling their search amid the Autumn Finances. That is leading to fewer transactions and a few sellers lowering their asking value to draw affords. First-time consumers, however, have maybe been the one demographic that has proven an identical degree of motivation seen throughout October final yr, with many aiming to maneuver into their new property by the tip of the yr.”
Amy Reynolds, head of gross sales at Antony Roberts: “Whereas Nationwide studies little change in common home value knowledge, on the bottom the property market stays sluggish, notably on the greater finish, as consumers and sellers sit tight forward of the Autumn Finances. London property is immediately tied to politics and the broader economic system, and the drawn-out uncertainty over potential tax modifications is freezing exercise and costing the Treasury in misplaced stamp responsibility.
“Any discuss of a mansion tax or additional property levies dangers inflicting actual harm. Bringing in one other tax layer, and the purple tape that comes with valuing such properties, would create big administrative prices, push some owners into unfavorable fairness and threat a self-inflicted disaster within the high-end market.”
Jason Tebb, president of OnTheMarket: “Whereas there’s a lot uncertainty, not least surrounding subsequent month’s Finances, the housing market continues to reveal resilience. Exercise is regular as targeted consumers and sellers proceed with their transactions. Whereas annual home value progress edges greater, values are being held in test to an extent as consumers discover themselves in a powerful place, which they’re utilizing to barter on value.
“Whereas mortgage charges are greater than they have been pre-pandemic, affordability challenges proceed to ease. Whereas the Financial institution of England held base fee ultimately month’s assembly, this has created a sense of stability with the suggestion of extra reductions to come back as soon as the speed setters are sure that inflation has peaked. Within the meantime, various lenders are lowering their mortgage charges on the again of falling Swap charges, together with easing standards, which ought to additional help with affordability.”
Marc von Grundherr, director of Benham and Reeves: “Householders might have been anticipating a Halloween fright with home costs easing on account of Autumn Finances uncertainty, however this merely hasn’t been the case.
“The UK property market continues to reveal the exceptional resilience that has been the theme all through this yr, with consumers nonetheless motivated and transaction exercise holding agency.
“London, specifically, stays an ever-present supply of energy, proving that even within the face of political and financial jitters, the capital’s market refuses to be spooked.”
Shepherd Ncube, CEO of Springbok Properties: “Home value progress continues to creep up, however many dwelling sellers are nonetheless being haunted by extended transaction timelines and market instability, that are resulting in a large number of gross sales falling via.
“The Autumn Finances will probably be very important in offering stability to the housing market, however it should do little to assist these in want of a quick, dependable sale earlier than Christmas.”
Iain McKenzie, CEO of The Guild of Property Professionals: “The most recent Nationwide figures level to a housing market that’s regaining its footing. A modest rise in annual home value progress to 2.4% and a 0.3% month-to-month enhance underline the resilience we’ve seen constructing all through 2025, supported by bettering purchaser confidence and easing mortgage charges.
“Whereas greater provide ranges and ongoing geopolitical and financial uncertainty recommend a gentle fairly than spectacular trajectory forward, the basics stay encouraging. The mix of a wider alternative of properties, rising actual wages, and a decrease base fee atmosphere helps to stabilise affordability and maintain purchaser exercise. We’re additionally seeing a tangible elevate in mortgage approvals, which is commonly a number one indicator of elevated transaction volumes within the months to come back.
“That mentioned, realism is vital in at this time’s market. With extra inventory accessible and consumers having better alternative, sellers who value sensibly are reaching sooner gross sales and higher outcomes. The truth that one in three properties has required a value adjustment highlights the significance of aligning expectations with present market situations.
“Trying ahead, we anticipate progress to stay modest however constant via the tip of the yr. A lot will hinge on the Autumn Finances and any coverage measures affecting housing or taxation. Whereas short-term warning is comprehensible, the medium-term image appears more and more optimistic as stability returns, and mortgage flexibility improves.”
