UK house prices rose 0.5% in September, keeping price growth steady, according to the Nationwide House Price Index. On an annual basis, the average house price increased 2.2%, up slightly from 2.1% in August, with the current average UK house price standing at £271,005.

Steady growth amid economic uncertainty

Nationwide’s chief economist, Robert Gardner, said:  “The annual pace of UK house price growth was little changed in September at 2.2%, marginally stronger than the 2.1% recorded in August. Prices increased by 0.5% month on month, after taking account of seasonal effects.

The broad stability in the annual rate of house price growth over the past three months mirrors that of activity. The number of mortgages approved for house purchase has been hovering around 65,000 cases per month, close to the pre-pandemic average, despite the higher interest rate environment.”

He added that underlying conditions remain supportive for potential home buyers: low unemployment, rising earnings, strong household balance sheets, and the possibility of slightly lower borrowing costs if the Bank Rate is cut in coming quarters.

Regional trends

• Northern Ireland remains the strongest performer, with 9.6% annual growth in Q3
• Wales saw growth increase to 3.0% (from 2.6% in Q2)
• Scotland slowed to 2.9% (from 4.5%)
• England experienced further slowing to 1.6%, with Northern England leading at 5.1% annual growth
• Southern England showed more modest gains at 0.7%

According to Nationwide, housing market activity is likely to strengthen gradually in the coming quarters, provided the broader economic recovery continues.

Industry reaction

Guy Gittins, CEO of Foxtons, said: “UK house prices have continued to edge higher on both a monthly and annual basis, demonstrating the resilience and consistency of the market, which has been the theme for much of 2025.

Progress during the traditionally quieter summer months has been steady. Sellers looking to complete their sale before Christmas need to enter the market now with the right agent and an added sense of urgency.”

Nathan Emerson, CEO at Propertymark, added:  “A sustained upward trend in house prices reflects a resilient and increasingly competitive housing market. This increase is driven by limited supply, strong buyer demand, and favourable lending conditions.

While rising prices show confidence in the housing sector, they also present challenges for affordability, requiring coordinated efforts to ensure inclusivity across the market.”

Takeaway

The UK housing market continues to show steady, regionally varied growth. Buyers and sellers alike should remain alert to regional trends and consider timing carefully, especially in high-demand areas of Northern England and Northern Ireland.