London Daily

Focus on the big picture.
Friday, Sep 11, 2026

UK house prices see 'surprise' pick-up, says Nationwide

UK house prices see 'surprise' pick-up, says Nationwide

House price growth rebounded last month with the average value hitting a record high of £231,068, according to the Nationwide.

Prices were up 6.9% from a year before, compared with 6.4% in January, it said.

"This increase is a surprise," said the Nationwide's Robert Gardner, as price growth had been expected to slow ahead of the end of the stamp duty holiday.

The holiday is due to end on 31 March although there have been reports it could be extended.

The stamp duty holiday means the tax has been suspended on the first £500,000 of all property sales in England and Northern Ireland since July.

There has also been some relief from the equivalent taxes for property buyers in Scotland and Wales - which is also set to end on 31 March.

An announcement on any changes in stamp duty could come in this week's Budget.

A mortgage guarantee scheme to help people with small deposits buy a property ladder is set to be announced in the Budget.

The government will offer incentives to lenders, bringing back 95% mortgages which have "virtually disappeared" during the pandemic, the Treasury says.


The Nationwide said house prices rose by 0.7% month-on-month, after taking account of seasonal effects, reversing the 0.2% monthly decline recorded in January.

However, it added that the outlook for the housing market was particularly uncertain right now, and the market could slow because of the employment situation. Many workers remain on furlough, and some of those jobs may not return.

Rival lender the Halifax said last month that the economic realities of 2021 meant activity would slow as the year progressed.

Mr Gardner, Nationwide's chief economist, said: "It may be that the stamp duty holiday is still providing some forward momentum, especially given the paucity of properties on the market at present.

"Shifts in housing preferences may also be providing a more significant boost to demand, despite the uncertain economic outlook.

"Many peoples' housing needs have changed as a direct result of the pandemic, with many opting to move to less densely populated locations or property types, despite the sharp economic slowdown and the uncertain outlook."

'Flight to safety'


Samuel Tombs, economist at Pantheon Macroeconomics consultancy, said he had been forecasting a fall in house prices this year, but the Nationwide numbers have prompted a rethink.

"Our forecast for house prices to drop by about 2% this year now looks too downbeat, though we'll wait for details of the guarantee scheme to be released before providing new numbers."

However, Anna Clare Harper, chief executive of asset manager SPI Capital, said: "Reduced stamp duty is not the only driver of house price growth since the strictest lockdown conditions were removed in 2020.

"We also have cheap debt as a result of very low interest rates, which gives buyers a 'discount'; the release of pent-up supply and demand and desire to improve surroundings amongst existing homeowners.

"There is also the 'flight to safety', since in times of uncertainty, people want to put their money in a stable asset with low volatility. These trends are likely to hold up throughout 2021."

Newsletter

Related Articles

0:00
0:00
Close
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
×