A surprise rise in house prices last month shows how resilient the property market currently is, experts say.

There was a 0.5% monthly increase in September after a 0.1% fall in August, according to the latest Nationwide HPI.

And the annual rate of house price growth was 2.2%, similar to 2.1% the previous month.

Largest increase

The largest increase was in Northern Ireland with annual prices up 9.6%. And the South East, outside London, experienced the smallest rise, at 0.3%.

This follows figures from HMRC this week showing a 2% increase in residential transactions in August.

Robert Gardner, Chief Economist at Nationwide, says: “The broad stability in the annual rate of house price growth over the past three months mirrors that of activity.

Housing market activity is likely to strengthen gradually in the quarters ahead.”

“The number of mortgages approved for house purchase have been hovering at around 65,000 cases per month, close to the pre-pandemic average (despite the higher interest rate environment),” he says.

“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”

Industry reaction

The agents

Guy Gittins, CEO, Foxtons

“UK house prices have continued to edge higher on both a monthly and annual basis, further demonstrating the resilience and consistency of the market, which has been the theme for much of 2025.

“Progress during the traditionally quieter summer months has been steady and, with the added stability of another base rate hold, the outlook for the remainder of the year remains positive, despite some uncertainty surrounding the upcoming budget.”

Amy Reynolds, Head of Sale, Richmond estate agency Antony Roberts

“With the summer market now out of the way, which was surprisingly resilient given continued caution demonstrated by buyers, many are now waiting for what the Budget might bring.

“That said, well-priced property continues to sell, and the gap between serious buyers and committed sellers has narrowed. Stock levels remain constrained in some areas, keeping competition strong for the best homes.”

Verona Frankish, CEO, Yopa

“Whilst we’re not seeing fireworks in terms of house price performance as we head into October, the overarching air of stability that has materialised in recent months suggests that market activity remains robust.

“We’re now entering a traditionally busy time of year, and the expectation is that this momentum will only build.”

The lender

Tomer Aboody, Director of specialist lender MT Finance

“We are seeing that despite plenty of negativity surrounding current market conditions, buyers are still transacting, although in smaller numbers than historically. Due to less demand, price growth is minimal but still positive.

“With sentiment in the broader, macro market still uncertain, we could possibly see another rate cut in the next six months, which will give buyers even more encouragement.”

The industry leader

Nathan Emerson, CEO, Propertymark

“A sustained upward trend in house prices reflects a resilient and increasingly competitive housing market.

“This increase can be attributed to several key factors, including limited housing supply, strong buyer demand, and favourable lending conditions that continue to support purchasing activity despite broader economic uncertainties,” he says.

“While rising house prices reflect confidence in the housing sector, they also present challenges that require coordinated responses to maintain affordability and inclusivity across the market.”

The portal

Jason Tebb, President, OnTheMarket

“While there is much uncertainty, not least surrounding the looming Budget at the end of November, the resilience of the market is remarkable.

“Activity is steady with focused buyers and sellers proceeding with their moves. Average prices are being held in check with buyers finding themselves in a strong position, which they are using to negotiate on price.”

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