Property industry reacts to latest Nationwide house price data – London Wallet

The was a slight increase in annual house price growth to 2.4% this month, according to Nationwide’s October House Price Index.

“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.”

Looking forward, Gardner believes that housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect. Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters.

“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 added.

What are the most popular home renovations?

Nationwide’s latest research found that kitchen and bathrooms renovations were the most popular amongst homeowners who have made improvements to their home in the last five years, with 71% undertaking either, or both, of these.

More than two in five (42%) added a bathroom or an ensuite, whilst 25% added an additional toilet.

Of those undertaking work, around a third (34%) made green improvements to their property, with over half of these (56%) adding solar panels. As Nationwide explored in their recent special report on the housing stock, solar panels are becoming an increasingly popular feature, with nearly 1.5 million dwellings in England having photovoltaic (PV) panels, equating to nearly 6% of total dwellings (up from less than 3% in 2013).

Younger homeowners appear to be most interested in greening their homes, with over two thirds (69%) of those aged 25 to 34 who had renovated in the last five years making green improvements. Older homeowners (those aged 55 or above) were least likely to have made green improvements (just 18%), with bathroom renovation being the most popular amongst this demographic (68% of those who had made improvements opted for this).

The most popular reason for renovating was to make the property look nicer (54%), while 35% were looking to boost the value of their property, with the latter being the most important factor for younger homeowners. 32% of those surveyed made improvements to modernise the property to make it habitable, while 26% were looking to add more space. Interestingly, just 7% were renovating in preparation for a sale.

What adds the most value?

Nationwide has used its house price data to look at the factors that affect the values of homes as well as the potential to add value2. While Nationwide was unable to identify the value associated with kitchen and bathroom renovations, it was possible to explore the impact of more substantial projects, particularly those which increase the size of the property.

It found that location remains key to house values, but other factors, such as the number of bedrooms, are also important to homebuyers. Home improvements that increase the size of the property, such as an extension or loft conversion, remain a compelling way to add value.

Value added 

Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it. A 10% increase in floor space, all things equal, adds 5% to the price of a typical house. But our analysis suggests that it is additional bedrooms that are key to adding value. For example, adding space to create an additional double bedroom can add 13% to the value of an existing two-bedroom house.

Homeowners that add a loft conversion or extension, incorporating a large double bedroom and bathroom, can add as much as 24% to the value of a three-bedroom, one-bathroom house, Nationwide said. 

Industry reaction to the latest house price data: 

Guy Gittins, CEO of Foxtons: “The latest Nationwide figures suggest that the housing market momentum has remained steady, with further upward price growth on both a monthly and annual basis reflecting cautious confidence within the market.

“With inflation holding firm at 3.8% for the third consecutive month, the prospect of a base rate cut before Christmas remains on the table. This will only help to boost current market sentiment, so any ‘wait-and-see’ approach adopted by buyers ahead of the upcoming Autumn Budget is likely to be short lived.

“As the year closes out, we expect market activity to strengthen in line with traditional seasonal trends, as motivated buyers and sellers push to complete before year-end or start 2026 on a positive footing.”

Tom Bill, head of UK residential research at Knight Frank: “Mortgage rates have been stable for a number of months, which has supported demand and put upwards pressure on house prices. However, a two-speed market has been created as the Budget approaches, with prices falling in higher-value areas due to uncertainty over property taxes. The risk is that momentum is gradually sapped from the wider market after 26 November.”

Verona Frankish, CEO of Yopa: “A double treat for homeowners this Halloween, with house prices up on both a monthly and annual basis and no sign yet of an Autumn Budget-induced trick.

“The market may not be moving at the speed of previous years, but this steady upward momentum underlines the strength of demand that continues to drive values higher.”

Nathan Emerson, CEO at Propertymark: “As the year continues to unfold, we have seen challenges and achievements in almost equal measure. It is positive for those on the housing ladder to see them accumulate more equity. However, the flip side is that it remains ever more demanding for first-time buyers to attain a foothold on their housing journey.

“Three base rate dips have helped increase consumer affordability; however, we still have a rate of inflation that is near double what the Bank of England is hoping for. We have seen Stamp Duty threshold changes disrupting sales trends for those in England and Northern Ireland earlier this year, and we now have the Autumn Budget just around the corner which may influence the smooth flow of property transactions, with many people holding out to see what changes may potentially be announced.”

Jeremy Leaf, north London estate agent: “This historically reliable indicator of market health mirrors recent strong mortgage approvals and steady growth, which is what we are seeing in our offices.

“Expectations of a modest rebound at least if Budget speculation does not prove as harmful as many expect has stirred a little more activity recently. Some buyers are hedging their bets to try to agree terms and before exchanging in early December if possible without fear of additional competition and possibly higher prices once the Chancellor’s intentions are known.”

James Nightingall, founder of HomeFinder AI: “The majority of house hunters are stalling their search amid the Autumn Budget. This is resulting in fewer transactions and some sellers reducing their asking price to attract offers. First-time buyers, on the other hand, have perhaps been the one demographic that has shown a similar level of motivation seen during October last year, with many aiming to move into their new property by the end of the year.”

Amy Reynolds, head of sales at Antony Roberts: “While Nationwide reports little change in average house price data, on the ground the property market remains sluggish, particularly at the higher end, as buyers and sellers sit tight ahead of the Autumn Budget. London property is directly tied to politics and the wider economy, and the drawn-out uncertainty over potential tax changes is freezing activity and costing the Treasury in lost stamp duty.

“Any talk of a mansion tax or further property levies risks inflicting real damage. Bringing in another tax layer, and the red tape that comes with valuing such properties, would create huge administrative costs, push some homeowners into negative equity and risk a self-inflicted crisis in the high-end market.”

Jason Tebb, president of OnTheMarket: “While there is much uncertainty, not least surrounding next month’s Budget, the housing market continues to demonstrate resilience. Activity is steady as focused buyers and sellers proceed with their transactions. While annual house price growth edges higher, values are being held in check to an extent as buyers find themselves in a strong position, which they are using to negotiate on price.

“While mortgage rates are higher than they were pre-pandemic, affordability challenges continue to ease. While the Bank of England held base rate at last month’s meeting, this has created a feeling of stability with the suggestion of more reductions to come once the rate setters are certain that inflation has peaked. In the meantime, a number of lenders are reducing their mortgage rates on the back of falling Swap rates, along with easing criteria, which should further assist with affordability.”

Marc von Grundherr, director of Benham and Reeves: “Homeowners may have been expecting a Halloween fright with house prices easing as a result of Autumn Budget uncertainty, but this simply hasn’t been the case.

“The UK property market continues to demonstrate the remarkable resilience that has been the theme throughout this year, with buyers still motivated and transaction activity holding firm.

“London, in particular, remains an ever-present source of strength, proving that even in the face of political and economic jitters, the capital’s market refuses to be spooked.”

Shepherd Ncube, CEO of Springbok Properties: “House price growth continues to creep up, but many home sellers are still being haunted by prolonged transaction timelines and market instability, which are leading to a great number of sales falling through.

“The Autumn Budget will be vital in providing stability to the housing market, but it will do little to help those in need of a fast, reliable sale before Christmas.”

Iain McKenzie, CEO of The Guild of Property Professionals: “The latest Nationwide figures point to a housing market that’s regaining its footing. A modest rise in annual house price growth to 2.4% and a 0.3% monthly increase underline the resilience we’ve seen building throughout 2025, supported by improving buyer confidence and easing mortgage rates.

“While higher supply levels and ongoing geopolitical and economic uncertainty suggest a steady rather than spectacular trajectory ahead, the fundamentals remain encouraging. The combination of a wider choice of homes, rising real wages, and a lower base rate environment is helping to stabilise affordability and sustain buyer activity. We’re also seeing a tangible lift in mortgage approvals, which is often a leading indicator of increased transaction volumes in the months to come.

“That said, realism is key in today’s market. With more stock available and buyers having greater choice, sellers who price sensibly are achieving faster sales and better outcomes. The fact that one in three properties has required a price adjustment highlights the importance of aligning expectations with current market conditions.

“Looking forward, we expect growth to remain modest but consistent through the end of the year. Much will hinge on the Autumn Budget and any policy measures affecting housing or taxation. While short-term caution is understandable, the medium-term picture looks increasingly positive as stability returns, and mortgage flexibility improves.”