The UK Nationwide House Price Index increased 0.6% year-on-year in December 2025, below market forecasts of 1.2% and easing from November’s 1.8% gain, marking the softest annual growth since April 2024. “Despite the softer end to the year, the word that best describes the housing market in 2025 overall is ‘resilient’. Even though consumer sentiment was relatively subdued, with households reluctant to spend and mortgage rates around three times their post-pandemic lows, mortgage approvals remained near pre-COVID levels.” Nationwide Chief Economist Robert Gardner said. ” However, the underlying picture was little changed as demand held up well throughout,” he added. Looking ahead, house price growth is expected to grow at an annual rate of 2% to 4% this year. On a monthly basis, prices unexpectedly fell 0.4%, defying market expectations of a 0.1% increase and reversing a 0.3% rise in the prior period, marking the first monthly decline in four months, due to seasonal effects.
