Economist: UK housing prices to soften by the end of 2025, while overall housing demand remains robust throughout the year

Golden Ten Data reported on January 2 that Nationwide Chief Economist Robert Gardner commented on the UK's December Nationwide House Price Index monthly rate: UK house prices softened by the end of 2025, with the annual increase slowing from 1.8% in November to 0.6%, the lowest level since April 2024. The slowdown in year-on-year growth can be partly explained by a higher base of comparison (the year-on-year increase in house prices in December 2024 was as high as 4.7%). However, after excluding seasonal factors, house prices still saw a month-on-month decline of 0.4% in December. Despite the weak performance at the end of the year, the best word to describe the overall housing market in 2025 remains "resilient." Even though consumer confidence is relatively low, household spending intentions are cautious, and mortgage rates remain about three times the post-pandemic lows, the number of approved mortgage loans is still close to pre-pandemic levels. Overall, the fundamentals have not changed significantly, and housing demand has remained robust.