House prices are anticipated to see gradual growth next year following a recent slowdown, according to experts. Data from the Halifax, a major mortgage lender, reveals that average property prices inched up by £138 in November, reaching a new high of £299,891, edging towards the £300,000 milestone.
Experts attribute the sluggish growth to nervousness before the Budget announcement. However, with the potential for a Bank of England rate cut in the near future, economists believe that property price growth might accelerate in early 2026.
While national house prices remained stable, certain regions outperformed others. For instance, Northern Ireland saw a significant annual increase of nearly 9% in average property prices, reaching £220,716. This surge is attributed to a housing supply shortage in the region, as highlighted in a report by Danske Bank. In contrast, Greater London continues to face challenges, with average prices dropping by 1% to £539,766.
Annual house price growth in Scotland recorded a 3.7% increase in November, with the average property value at £216,781. In Wales, property values rose by 1.9% year-on-year, standing at £229,430. The North West of England saw the highest annual growth rate, with property prices rising by 3.2% to £245,070 annually.
Overall, the UK witnessed a sharp slowdown in annual price growth last month, dropping from 1.9% to 0.7%. Despite this, affordability has improved for first-time buyers, with property prices becoming more aligned with average incomes. Market experts anticipate a gradual increase in property prices as the year progresses into 2026.
Industry professionals note that the housing market has demonstrated resilience in 2025, with regional disparities in performance. Greater supply of homes in the market has led to increased choices for buyers, thereby moderating price growth in the short term. Affordability remains a key concern due to factors such as inflation and global economic conditions affecting mortgage rates.
Looking ahead, experts are cautiously optimistic about the market’s potential for growth in the coming year. The possibility of a rate cut by the Bank of England, coupled with falling mortgage rates and rising wages, could lead to increased affordability and potentially stimulate market activity.