"Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026"
- Amanda Bryden - Halifax
UK house prices showed little movement in November, holding flat after a modest rise in October, according to the latest data released by Halifax.
Data for the month indicates that the average property price remains at £299,892, reaching a new high despite slower annual growth.
Year-on-year inflation eased to 0.7%, compared with 1.9% in October, a shift linked to stronger performance during the same period last year. Regional figures continue to highlight a divide between northern and southern parts of the country, with several southern regions reporting monthly declines.
National and regional breakdown
Across the UK, northern markets recorded the strongest momentum. Northern Ireland led all nations and regions, with prices rising 8.9% over the past year to an average of £220,716. Scotland followed with annual growth of 3.7%, taking the typical price to £216,781. In Wales, values increased 1.9% year-on-year to £229,430.
In England, growth was concentrated in the North West, where prices increased 3.2% to £245,070. The North East recorded a 2.9% rise, bringing the average home to £180,939. Further south, however, several regions experienced declines in November. London saw a 1.0% drop, the South East fell 0.3%, and Eastern England dipped 0.1%. London remains the most expensive part of the UK, with the average property now priced at £539,766.
“Average house prices were broadly unchanged in November, edging up by £139 compared to October, with the typical property now costing £299,892,” said Amanda Bryden, head of mortgages, Halifax. “Annual growth has slowed to +0.7%, the weakest rate since March 2024, though this largely reflects the base effect of much stronger price growth this time last year."
"This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady."
Bryden concludes, "While slower growth may disappoint some existing homeowners, it’s welcome news for first-time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years. Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
Tom Bill, head of UK residential research at Knight Frank said, “Both main UK indices show how pre-Budget uncertainty pushed house price growth close to zero. Clarity has now returned, but an array of tax rises, which include an income tax threshold freeze, will increasingly squeeze demand and prices. Offsetting that is the fact that mortgage rates are expected to drift lower next year as the base rate bottoms out at around 3.25%.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “While some worried about Budget measures and put plans on hold, fortunately enough buyers and sellers have confidence in the longer-term prospects of the housing market and continue with their plans regardless.
“With inflation appearing to have peaked and the direction of travel for interest rates set to be downward in the coming months, there are brighter times ahead."
Tomer Aboody, director of specialist lender MT Finance, says: “The fear of what the Budget might hold for the housing market encouraged some to make their move in November, rather than waiting for the outcome.
“Precious little encouragement from the Government to make moving more attractive is having an impact on the market. Property prices are being supported by lack of stock and competition among buyers for what is available.
“The Budget was an opportunity missed, with no measures to boost transactions so we don’t expect a significant improvement in the new year. That said, a further interest rate reduction would help affordability and confidence."
