02.01.202607:05:35UTC+00UK House Price Growth Hits 20-Month Low

The UK Nationwide House Price Index registered a 0.6% increase year-on-year in December 2025, falling short of market predictions of 1.2% and down from November’s 1.8% rise. This represents the slowest annual growth since April 2024. "While the year concluded on a softer note, the predominant characteristic of the 2025 housing market has been its resilience," noted Robert Gardner, the Chief Economist at Nationwide. "This resilience persisted even as consumer sentiment remained relatively muted, with households hesitant to spend and mortgage rates elevated to approximately triple their post-pandemic lows. Nevertheless, mortgage approvals remained close to pre-COVID standards," he explained. Gardner further mentioned that the demand had consistently held strong, illustrating an unchanged underlying market scenario. Looking forward, housing market activity is projected to grow annually by 2% to 4% next year. On a month-to-month basis, housing prices unexpectedly decreased by 0.4%, contradicting market expectations of a 0.1% rise and reversing a previous 0.3% increase, marking the first drop in four months, attributed to seasonal factors.