Finance
UK house prices rise in October, defying pre-budget nerves
Published by Global Banking and Finance Review
Posted on October 31, 2025
Editorial & Advertiser disclosure
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
LONDON (Reuters) -British house prices rose in October, lender Nationwide said on Friday outpacing forecasts by economists and adding to signs of demand in the housing market in the run-up to finance minister Rachel Reeves' budget which is likely to include tax increases.
Nationwide said its house price index increased by a monthly 0.3% after rising by 0.5% in September.
House prices were 2.4% higher than a year earlier, speeding up from an annual increase of 2.2% in September, it said.
Economists polled by Reuters had on average forecast no change in prices in monthly terms and a 2.3% annual increase.
"Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all time highs," Robert Gardner, Nationwide's Chief Economist, said.
Data published by the Bank of England on Wednesday showed the number of mortgages approved by lenders in September came in higher than expected.
However, some other measures of the housing market have suggested a slowing in price growth in recent months which has been attributed to caution among homebuyers ahead of Reeves' budget on November 26.
Gardner said housing affordability was likely to improve modestly if income growth continues to outpace house price growth as Nationwide expects.
"Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters," he said, referring to the BoE's benchmark rate.
"This should support buyer demand, especially since household balance sheets are strong – indeed, in aggregate the ratio of household debt to disposable income is at its lowest for two decades," Gardner said.
(Writing by William Schomberg; Editing by Kate Holton)