Nationwide Reports 2.4% Annual Growth in UK Property Prices for July 2025

Market Shows Signs of Stability as Prices Tick Up

Nationwide’s July 2025 report shows UK house prices rose 2.4% annually, up from 2.1% in June. On a monthly basis, prices increased 0.6%, bringing the average UK home value to £272,664.

While growth remains modest, the data points to renewed buyer confidence, improving affordability, and more stable market conditions.

“Housing activity is gradually recovering, supported by stronger earnings and more manageable mortgage rates,” said Robert Gardner, Nationwide’s Chief Economist.

Mortgage Approvals and Affordability on the Rise

• 64,200 mortgage approvals were recorded in June, close to pre-pandemic levels.
• Affordability is improving: the price-to-income ratio is now 5.75, down from a 2022 peak of 6.9.
• Average five-year fixed mortgage rates sit at around 4.3%, easing pressure on borrowers.

Nationwide suggests the housing market is adjusting well to the post-pandemic landscape, with growing availability of higher loan-to-value mortgages making it easier for first-time buyers to enter the market.

Outlook: Positive but Cautious

Property professionals remain cautiously optimistic.
Most agree the second half of 2025 will bring continued stability—especially if the Bank of England cuts interest rates further. Still, pricing sensitivity and increased stock mean it remains a buyer’s market.

“We’re seeing more stock, cautious but confident buyers, and steady price growth – a sign of a healthier, more balanced market,” said Iain McKenzie, CEO of The Guild of Property Professionals.

What This Means for Investors

The market is no longer in recovery mode—it’s entering a phase of sustainable growth. For property investors, this presents a timely opportunity to:

• Secure assets while prices are stable
• Benefit from increasing buyer demand
• Take advantage of more competitive mortgage products