The UK housing market in September 2025 showed steady resilience, with annual house price growth holding at 2.2 percent, just above August's 2.1 percent. Prices rose by 0.5 percent month-over-month (seasonally adjusted), pushing the average home value to £271,995.

Northern Ireland continued to outperform the rest of the UK, recording impressive annual growth of 9.6 percent, while the Outer South East trailed with a minimal 0.3 percent rise. Regionally, Northern England fared better than the South, with the North seeing prices climb by 5.1 percent compared with a muted 0.7 percent in Southern England. Property type trends revealed semi-detached homes leading growth at 3.4 percent, while flats slipped into decline, down 0.3 percent year-over-year, reflecting their weaker long-term performance.

Despite higher interest rates, market stability has been supported by low unemployment, rising earnings, and stronger household finances. Mortgage approvals, averaging 65,000 monthly, remain close to pre-pandemic norms, suggesting steady demand. Looking ahead, modest improvements are expected if borrowing costs ease and economic recovery persists. In summary, the latest updates indicate a housing market that is stable yet uneven, with regional and property-type variations influencing the broader picture of recovery.

The Nationwide House Price Index (HPI) provides house price information derived from Nationwide lending data for properties at the post survey approval stage. Nationwide house prices are mix adjusted; that is, they track a representative house price over time rather than the simple average price.

Home values affect much in the economy especially the housing and consumer sectors. Periods of rising home values encourage new construction while periods of soft home prices can damp housing starts. Changes in home values play key roles in consumer spending and in consumer financial health. During the first half of this decade sharply rising home prices boosted how much home equity households held. In turn, this increased consumers' ability to spend, based on wealth effects and from being able to draw upon expanding home equity lines of credit.

Although the Nationwide data are calculated similar to the Halifax method Nationwide substantially updated their system in 1993 following the publication of the 1991 census data. These improvements mean that Nationwide's system is more robust to lower sample sizes because it better identifies and tracks representative house prices. Historically, the data go back to 1952 on a quarterly basis and 1991 on a monthly basis.

Over long periods the Halifax and Nationwide series of house prices tend to follow similar patterns. This stems from both Nationwide and Halifax using similar statistical techniques to produce their prices. Nationwide's average price differs because the representative property tracked is different in make up to that of Halifax.