London Daily

Focus on the big picture.
Thursday, Sep 17, 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
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
×