Published by Global Banking & Finance Review®
Posted on October 1, 2025
2 min readLast updated: January 21, 2026
UK house prices increased by 0.5% in September, exceeding expectations. Annual growth reached 2.2%, with notable regional variations.
LONDON (Reuters) -British house prices rose slightly faster than expected last month, increasing 0.5% in September after a 0.1% drop in August, major mortgage lender Nationwide Building Society said on Wednesday.
House prices in September were 2.2% higher than a year earlier, up from an annual increase of 2.1% in August and well below the rates of both average wage growth and consumer price inflation.
Economists polled by Reuters had on average forecast a 0.2% monthly rise in house prices and a 1.8% annual increase.
Nationwide said the annual pace of house price growth and transaction volumes appeared to have stabilised after rising faster earlier this year as buyers sought to take advantage of the final months of a tax break on some home purchases.
"Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further," Nationwide Chief Economist Robert Gardner said.
House prices in the third quarter of this year rose fastest in Northern Ireland and northern England - up 9.6% and 5.1% respectively compared with a year earlier - while they rose just 0.6% in London and 0.3% elsewhere in southeast England.
(Reporting by David Milliken; editing by Sarah Young)
A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan.
House prices refer to the monetary value of residential properties, which can fluctuate based on market conditions, demand, and economic factors.
Economic growth is an increase in the production of goods and services in an economy over time, often measured by GDP.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
A financial market is a marketplace where assets such as stocks, bonds, currencies, and derivatives are traded.
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