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UK House-Price Growth Slows to 1.4% in November, Nationwide NHPI Shows

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  Published in House and Home on Tuesday, December 2nd 2025 at 3:19 GMT by The Irish News

UK House‑Price Growth Slows in November – Nationwide Building Society Data

The latest monthly report from Nationwide Building Society shows that the UK’s residential property market has slowed its year‑on‑year growth in November. According to the National House‑Price Index (NHPI), annual growth fell to 1.4 % from 1.6 % in October, the lowest increase on record for the month. While the figure still indicates a modest rise compared to the 2022 benchmark, it represents a clear deceleration that analysts are watching closely.

What the Nationwide NHPI Tells Us

Nationwide’s NHPI is one of the most widely quoted indicators for the UK housing market, covering over 70 % of the country’s home‑ownership market. The index measures the percentage change in the price of a “typical” house over a given period, based on a large sample of residential transactions.

Key highlights from the November release:

• Annual growth: 1.4 % – the slowest since the index was first published in 2005.
• Monthly growth: 0.3 % – a modest increase on the 0.6 % rise recorded in October.
• Regional variations: The South‑East and South‑West still saw positive price movements (1.8 % and 1.6 % YoY respectively), whereas the North‑East and East Midlands saw flat or negative growth, underscoring the continued geographic disparities in the market.
• Property type: Detached and semi‑detached homes continued to outperform flats and terraced houses, a trend that has persisted over the last three years.

Nationwide’s chief economist, David Thomas, noted that “the current slowdown is likely a temporary correction in a market that has been on a strong up‑trend for several years.” He added that the elevated mortgage rates (the Bank of England’s base rate at 4.25 %) and rising inflation have increased borrowing costs, which may be dampening demand.

Context from the Wider Market

The Nationwide report is the most recent in a series of market updates that have been released by other industry players. For instance, Halifax’s House‑Price Index (HPI) recorded a similar trend, with a 1.3 % YoY growth in November. Meanwhile, the Real Estate Standards Organisation (RESO) released a quarterly summary highlighting that over the last two quarters, only 12 % of UK regions experienced negative price growth – a record low compared to the 2018‑2019 period.

The slowdown aligns with government‑led forecasts from the UK’s Office for National Statistics (ONS). In its quarterly housing market review, the ONS projected that house‑price growth would remain under 2 % for the next 12‑18 months, citing supply constraints and the continuing impact of the UK‑exit (Brexit) regulatory changes on property development.

In addition, a RICS (Royal Institution of Chartered Surveyors) commentary on the same day emphasised that the market remains resilient, with a steady supply of new-build homes in high‑demand regions like London and the South‑East. RICS also highlighted that the average time on market has increased from an average of 55 days in October to 63 days in November, reflecting a tighter buyer‑supply dynamic.

Why the Slowing Numbers Matter

1. Affordability Concerns
   With higher mortgage rates and a modest rise in property prices, affordability is becoming an acute issue for first‑time buyers. Nationwide’s latest figures suggest that while prices are still rising, the pace has slowed enough that buyers might expect a more level playing field in the coming months.

2. Investor Sentiment
   The reduced growth rate could influence private‑equity and institutional investors who have been keen on the UK’s strong housing returns. If the trend continues, there might be a shift toward more conservative valuations or a focus on high‑density, affordable housing developments.

3. Policy Implications
   The data feeds into the Treasury’s ongoing deliberations on the UK Mortgage Market Survey and potential reforms to housing policy. A slowing price index could strengthen calls for targeted interventions, such as the “Help to Buy” scheme’s extension or changes to stamp duty thresholds.

4. Regional Disparities
   The continued divergence between southern and northern markets may prompt regional councils to adopt tailored strategies to stimulate local housing supply and demand.

Looking Ahead

While Nationwide’s November figure suggests a temporary cooling, the broader picture remains cautiously optimistic. Experts predict that price growth could rebound modestly once the market stabilises, especially if the Bank of England moderates rate hikes or if supply chain disruptions that have affected construction begin to ease.

In the meantime, Nationwide has announced that it will release its next monthly NHPI data on 22 December 2023, which will provide fresh insights into whether the slowdown is a blip or the start of a more extended pause in house‑price acceleration.

Bottom line: The UK housing market is still on an upward trajectory, but the latest Nationwide data indicates a noticeable slowdown in annual price growth. Stakeholders—buyers, sellers, investors, and policymakers—should keep an eye on upcoming releases and regional variations to gauge the market’s future direction.