By Anthony O. Goriainoff
The U.K.'s housing market activity remained resilient in 2025, despite subdued consumer sentiment, and is expected to strengthen in 2026, according to Nationwide's House Price Review.
According to the U.K.-based financial institution, buyer demand held up better than expected despite higher mortgage rates and lower consumer confidence, as annual house-price growth slowed to less than 2% by late 2025 and was below the growth in wages. This helped keep demand steady as buying a home became slightly more affordable.
Annual house-price growth in Northern Ireland outpaced the rest of the country and averaged 11% in the first nine months of the year. This was almost four times faster than the 3% recorded in the U.K. as a whole and more than double the 5.1% recorded in the north of England, the next strongest-performing region.
Wales broadly matched the wider U.K. trend, with Scotland experiencing a marginally stronger rate of house-price growth. London was the weakest-performing region in the first nine months of the year, where annual growth averaged 1.3%.
Nationwide expects annual house-price growth in 2026 to broadly remain in the 2% to 4% range.
"We expect housing-market activity to strengthen a little further as affordability improves gradually--as it has been in recent quarters--via income growth outpacing house-price growth and a further modest decline in interest rates," Nationwide said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
December 15, 2025 03:55 ET (08:55 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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