UK house price growth slowed slightly in November, but the latest Nationwide data suggests the market remains surprisingly steady. Prices were up 0.3% month-on-month and 1.8% annually, despite mortgage rates still sitting above pre-pandemic levels. For landlords, constrained rental supply and improving buyer sentiment may shape investment strategies heading into 2026.
House price trends and Budget impact
Nationwide’s November House Price Index shows the average UK property now stands at £272,998, up from £272,226 in October. Month-on-month growth strengthened from 0.2% to 0.3%, although the annual rate eased from 2.4% to 1.8%.
Robert Gardner, Chief Economist at Nationwide, said the figures reflected “resilience, especially since mortgage rates are more than double the level they were before Covid.”
For landlords weighing exit or acquisition timing, stability matters. Mortgage approvals have hovered near pre-pandemic norms for months, according to UK Finance releases, suggesting the market hasn’t stalled – just slowed.
Gardner also noted the Autumn Budget’s property tax changes are unlikely to move the wider market, as the high-value council tax surcharge affects less than 1% of homes in England and around 3% in London, based on Nationwide’s analysis.
However, the Budget’s increased tax burden on rental income could affect landlord decision-making. He warned this may “dampen the supply of new rental properties,” potentially sustaining rental price growth – which ONS data recently confirmed remains at record highs.
Rental market outlook and investor implications
Letting agents continue reporting constrained stock. Foxtons CEO Guy Gittins said confidence has strengthened now the Budget uncertainty has cleared, adding:
“With no major tax changes affecting most of the market, more households are likely to resume moving plans.”
Agents have observed a pattern: when buyers hesitate, renters stay put longer, pushing rental demand higher and reducing void periods. In Greater Manchester, for example, Rightmove reported earlier this year that rental enquiries per listing were 28% above the five-year average – a trend still visible in many urban markets.
The modest growth seen in November suggests the market is edging toward balance rather than correction. Verona Frankish, CEO of Yopa, described the monthly rise as evidence the sector has been “remarkably robust during a turbulent economic year.”
For buy-to-let investors, this translates into two potential outcomes: firmer yields in tight rental regions and better purchase negotiation conditions where motivated sellers have entered the market.
Market confidence heading into the 2026 cycle
Multiple commentators referenced a possible early-year acceleration. Marc von Grundherr of Benham and Reeves said the positive November reading hinted at a “late-season push.” Meanwhile, Springbok Properties founder Shepherd Ncube offered a contrasting tone, warning the market could “limp to the finish line” if transaction bottlenecks persist.
Yet it was Jonathan Hopper of Garrington Property Finders who captured the turning point most clearly, describing the post-Budget momentum as “a rapid thaw after months of stalled demand.”
He highlighted two forces landlords should watch closely:
- The expected Bank of England rate cut, which could increase mortgage affordability
- The rising number of small landlords selling due to higher income tax pressure
That second point could push more sales stock to market – potentially driving marginal price softening in some regions while simultaneously tightening local rental supply.
Editor’s view
A cooling but stable market is often where savvy landlords operate best. Rising rents, limited stock, gradual mortgage rate improvements and tentative buyer confidence suggest a more predictable 2026 – not a boom, not a crash, but a period where informed strategy may outperform sentiment. The real question now is whether policymakers continue nudging landlords out, or finally recognise the role they play in keeping housing supply functional.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance
Published: 2 December 2025
Sources: Nationwide HPI, ONS rental data, Foxtons, Yopa, Benham and Reeves, Garrington Property Finders
Related reading: House prices dip in the south as buyers pause before Budget tax decisions
