Nationwide House Price Index – Thoughts from the Industry
The latest Nationwide House Price Index for July 2025 shows that:
House prices increased by 0.6% between June and July of this year.
On an annual basis, the average house price increased by 2.4% up from a 2.1% annual rate of growth in June.
As a result, the average UK house price now sits at £272,664.
Here are some thoughts from the industry.
Nathan Emerson, CEO at Propertymark:
“This shows that the UK’s housing market remains stable at a time when numerous domestic and international factors are impacting the wider economy.
“With continued talk of a gradual easing of interest rates, even while inflation remains above the Bank of England’s targeted rate of 2%, it is vital that this results in more affordable mortgage products for aspiring buyers and home movers. Many people are delaying paying off their mortgages until later in life via 35-year or 40-year mortgages. Therefore, a reduction in interest rates would be very welcome to help offset ongoing financial pressures and worries over the cost of living for many.”
Director of Benham and Reeves, Marc von Grundherr:
“The monthly rate of house price growth has been unpredictable of late, however, July saw the decline of the previous month reversed and we continue to see a consistently strong performance where the annual rate of growth is concerned – which is a far better indicator of the health of the market.
This overarching air of positivity has been driven by buyers returning with confidence and, since March of last year, we’ve seen mortgage approvals remain above the 60,000 threshold. With this figure having also increased over the last two months, we can expect continued stability in house prices for the remainder of the year, as more buyers look to make their move.”
CEO of Yopa, Verona Frankish:
“July was a wholly positive month for the market, with house prices seeing positive movement both on a monthly and annual basis.
Recent improvements in mortgage market affordability, including the move to increase income lending multiples and the decision to launch a permanent Mortgage Guarantee Scheme, should help ensure that buyer activity remains consistent and house prices continue to strengthen.
However, it’s important to remember that the homebuying process remains challenging for many, and while market sentiment is positive, sellers must remain realistic when pricing for current market conditions if they wish to secure a sale.”
Tom Brown, Managing Director, Real Estate at Ingenious:
“Today’s data underscores the continued resilience and appeal of the UK property sector despite elevated inflation and stubborn borrowing costs. We have welcomed the BoE’s recent rate cut as a hopeful first step in a much-needed easing cycle.
“There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.
“At Ingenious, we continue to work closely with borrowers and investors, adapting to the dynamic market landscape and broader economic shifts, including those related to the climate crisis and changing lifestyles. We are expanding the reach of our development lending product to provide extended stabilisation terms for specialised developers in the rental sector. Furthermore, we’re introducing special lending terms for developers focused on reducing embedded carbon in their construction practices.”
CEO of Foxtons, Guy Gittins:
“The latest Nationwide figures show that the monthly decline seen in June has already reversed. While the return to monthly growth is welcome, it’s the annual rate of growth that offers a clearer view of market resilience amid a still uncertain economic backdrop.
The first half of the year was notably positive, with a strong Q1 driven by increased buyer activity acting ahead of the of the stamp duty deadline. Although Q2 brought a more measured pace, demand has remained resilient in the face of elevated borrowing costs and ongoing economic uncertainty.
Recent government action to ease lending constraints, including the new mortgage guarantee scheme, is encouraging, but its impact may be limited without broader reforms, particularly a review of stamp duty, to help stimulate activity and improve access to home ownership.”
Daniel Austin, CEO and co-founder at ASK Partners:
“Today’s rise in property prices brings some optimism, but growth remains subdued as high borrowing costs continue to weigh on buyers. While the Bank of England’s decision to hold rates offers limited reassurance, persistently elevated fixed mortgage rates are still delaying meaningful relief.
“The construction sector is already grappling with soaring build costs, planning bottlenecks, and a chronic shortage of skilled labour. Investors and developers remain motivated by the enduring supply-demand imbalance, particularly in resilient sectors such as co-living and build-to-rent.
“For investors seeking stability amid global uncertainty, including market volatility triggered by resurgent US protectionism, UK real estate debt continues to stand out. It offers capital preservation, steady income, and insulation from equity market swings, making it an increasingly attractive alternative in this environment.”
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