House prices are expected to see gradual growth in the upcoming year following a recent slowdown, according to experts. Data from the Halifax, a mortgage lender, reveals that average property prices experienced minimal growth in November, edging up by £138 to reach a new high of £299,898, just shy of £300,000.
Economists attribute the sluggish growth to pre-Budget uncertainties, but they anticipate a potential Bank of England rate cut in the near future, which could stimulate price increases early next year.
While national prices remained stable, some regions outperformed others significantly. For instance, Northern Ireland saw a substantial 9% year-on-year increase in average property prices, reaching £220,716, driven by a persistent supply-demand imbalance. Conversely, Greater London continued to struggle, with prices dropping by 1% to an average of £539,766.
The UK witnessed a notable slowdown in annual price growth, decreasing from 1.9% to 0.7% last month. Amanda Bryden, the head of mortgages at the Halifax, noted that this was the weakest growth since March 2024, primarily influenced by the stronger growth rates observed the previous year.
Bryden mentioned, “Despite changes in stamp duty and pre-Budget uncertainties, property values have held steady. While slower growth might disappoint existing homeowners, it presents a positive outlook for first-time buyers. Affordability has improved significantly, reaching levels not seen since late 2015.”
Annual house price growth in Scotland reached 3.7% in November, with the average property value standing at £216,781. In Wales, property values increased by 1.9% year-on-year to an average of £229,430. The North West of England recorded the highest annual growth rate at 3.2%, with property prices averaging £245,070. London, despite the decline, remains the most expensive region in the UK.
Jason Tebb, the president of OnTheMarket, highlighted the regional disparities within the housing market, emphasizing the stronger performance in the north compared to the costlier south where affordability remains a challenge.
Iain McKenzie, the chief executive of The Guild of Property Professionals, pointed out the increased supply of homes in the market compared to the previous year, leading to more options for buyers and moderating price growth in the short term.
Karen Noye, a mortgage expert at wealth manager Quilter, highlighted that post-Budget clarity has provided borrowers with a clearer outlook for early 2026. Affordability remains a key concern, with mortgage pricing sensitive to market fluctuations and global pressures affecting borrowing capabilities.
Sarah Coles, head of personal finance at Hargreaves Lansdown, noted the sluggish pace of house price growth in recent times, with uncertainties impacting market dynamics. She expressed optimism for a potential improvement in the new year, citing expected rate cuts and declining mortgage rates, which could enhance affordability and stimulate market activity.