Overview
- Annual growth slowed to 0.6% in December from 1.8% in November, taking the average UK price to £271,068, according to Nationwide.
- Nationwide described 2025 as resilient, noting subdued consumer sentiment and mortgage rates well above post‑pandemic lows yet approvals near pre‑Covid levels.
- Nationwide expects prices to rise by roughly 2% to 4% in 2026, while Capital Economics links December’s fall to still‑high borrowing costs and weak employment.
- Nationwide says recent property tax measures should have limited near‑term impact, with the high‑value council tax surcharge delayed until April 2028 and affecting a small share of homes.
- Stamp duty changes that took effect in April drove a March transaction surge and subsequent softness, as the Bank of England’s rate cuts to a three‑year low set the stage for potential affordability gains.