New Nationwide '£139' update issued as November decision nears

New Nationwide '£139' update issued as November decision nears Experts have given their reaction to the latest situation Experts have reacted to a new update from Nationwide Building Society on Friday. UK annual house price growth slowed to 0.5% in October, its weakest pace since January 2024, according to Nationwide’s House Price Index. Experts told Newspage that the average UK home was now worth just £139 more than in May 2025, highlighting the slowdown in the housing market. Experts said all eyes now turn to the Bank of England's Monetary Policy Committee and whether it decides to raise interest rates at its November meeting. Chris Barry, director at London-based Thomas Legal, said today's data was "a reflection of reducing demand over many months". He added: "Mortgage approvals have been reducing month on month since the spring, whilst stock continues to hit the market at a steady rate, widening the gap between supply and demand. The Budget was broadly uneventful from a property perspective and this gives a level of certainty for buyers to make a decision in the near future. "All eyes are now on interest rates over the coming months. If the BoE hold in November, this pent-up demand could come flowing into the market before everyone packs up for a mince pie and a glass of Blue Nun." Housing slowdown 'predictable' Patricia Ogunfeibo, founder and non-practising solicitor at London-based tenant2owner, said: "This was predictable with the number of landlords offloading their stock. If the budget has the effect many people expect, more properties will display for sale boards over the next few years and so the situation is unlikely to improve anytime soon." Wesley Davidson, director of Bristol-based Fox Davidson, said: "Seventeen months of flat prices and you'd be £139 better off. That's not a crash, it's a market that's run out of puff. "Buyers are cautious, sellers haven't caught up, and the gap is showing in the price. The 18-year cycle crowd had 2026 pencilled in as the big peak. Instead we've got stalemate. “The good news is affordability is now below its 25-year average, so the fundamentals for buyers are the best they've been since before Covid. We're still busy, but it's landlords and high earners doing the deals, buying at May 2025 prices while everyone else waits for a sign. That sign is rates. A cut from the Bank of England and spring could be lively. Another hold and expect a long, quiet winter of sharp-pencilled negotiations." Struggling market Tracey Dixon, buy-to-let mortgage specialist and owner of Pure Mortgage and Protection, said: "A flat house price does not mean a cheap mortgage. These figures suggest a market struggling to build momentum, but slower annual growth is not the same as a house -price crash. For buyers, the real test remains the deposit and monthly payment, rather than whether the national average has nudged up or down. "More stable prices can give people time to save and negotiate, but sellers need to price against comparable local sales rather than yesterday’s expectations. My expectation is for subdued, uneven price movements over the next few months, with affordability limiting the scope for strong growth. For landlords, this reinforces the need for a property to work on rental income after borrowing costs, maintenance and tax. Future capital growth should be a potential benefit, not the rescue plan for an investment that loses money every month." 'Not crashing' Ranald Mitchell, director of Charwin Mortgages, said: "The housing market is not crashing, it is treading water. Seventeen months of virtually no growth show buyers have hit the limit of what current incomes and mortgage rates can support. Affordability has improved from the post-pandemic peak, but homes still do not feel cheap because borrowing costs remain high. "We are still seeing demand, but buyers are negotiating harder and sellers need to be realistic. This is not a market waiting for the next boom. It is a market being dragged back towards what people can genuinely afford." Stephen Perkins, Norwich mortgage broker and managing director at Yellow Brick Mortgages, said: "House prices have barely moved and annual growth of just 0.5% is well below inflation, so in real terms homeowners are still seeing values fall while buyers are becoming more price-sensitive. I would also be cautious about saying homes have simply become more affordable. "Prices have lagged wage growth, which helps, but higher mortgage rates can wipe out much of that benefit when you look at the monthly payment. I expect prices to remain fairly flat over the next few months, with big regional differences. The key to getting the market moving again is not another burst of house-price growth, it is greater stability in mortgage costs and enough confidence for buyers and sellers to transact."