Here is a summary of the UK housing market report from Nationwide Building Society and the expected Bank of England announcement.

House Price Growth

• According to the Nationwide House Price Index, UK property values increased by 0.6% month-on-month in July 2025. This followed a 0.9% drop in June.
• The average UK house price is now £272,664.
• Annually, house prices rose by 2.4% in July, a slight increase from the 2.1% annual growth recorded in June.

Mortgage Activity & Economic Outlook

• Nationwide’s Chief Economist, Robert Gardner, noted that despite the end of the stamp duty holiday, housing market activity appears to be holding up well.
• Mortgage approvals for house purchases in June were at 64,200, which is broadly in line with the pre-pandemic average.
• Gardner suggests that underlying conditions for homebuyers remain supportive, citing low unemployment, healthy earnings growth, strong household finances, and the expectation of lower borrowing costs.
• He anticipates that if the broader economic recovery continues, housing market activity will strengthen gradually in the coming quarters.

Bank of England Base Rate

• The Bank of England is expected to announce a further 0.25% cut to the base rate this Thursday, August 7, 2025. This would likely contribute to the “moderate” borrowing costs mentioned by Nationwide.