The latest UK House Price Index, covering November, reveals that average UK house price annual inflation was 2.5% in the 12 months to November 2025, up from the revised estimate of 1.9% in the 12 months to October 2025.
The average UK house price was £271,000 in November 2025, £6,000 higher than 12 months ago.
On a non-seasonally adjusted basis, average UK house prices increased by 0.3% between October 2025 and November 2025, compared with an decrease of 0.3% in the same period 12 months ago. Seasonally adjusted average house prices in the UK increased by 0.7% between October 2025 and November 2025.
Of the English regions, annual house price inflation was highest in the North East, where prices increased by 6.8% in the 12 months to November 2025. London was the English region with the lowest annual inflation, where prices decreased by 1.2% in the 12 months to November 2025.
Industry reaction
Simon Gerrard, chairman, Martyn Gerrard Estate Agents:
“These figures for November are out-of-date and irrelevant. The property market in London was significantly impacted for most of the last quarter of last year thanks to fears whipped up by the budget.
“The key data to watch this week was Rightmove’s figures showing the average price of a home has risen by almost £10,000 over the past five weeks, which is the result of considerably increased activity. That is the largest monthly jump in a decade and matches what we’re currently seeing on the ground.
“It’s now evident that the biggest drag on the UK property market is government messaging. If Labour can provide some stability and reassurance and avoid any more ill-judged interventions, then we should see a booming market this year.”
Richard Donnell, executive director at Zoopla:
“Budget uncertainty hit demand for housing in the sales market, while more homes for sale is boosting choice and supporting a buyers’ market which is keeping price growth in check. There has been a strong rebound in demand over the first weeks of 2026, but demand is 10% below last year and in linen with 2024. There is demand for housing, but sellers need to price realistically to achieve a sale in 2026.”
Andrew Lloyd, managing director at Search Acumen:
“Much of this activity reflects decisions made earlier in the year, before confidence was repeatedly knocked by economic and fiscal uncertainty. Demand hasn’t disappeared, but affordability pressures, mortgage pricing and unresolved tax questions continue to act as a drag, keeping many households on the sidelines.
Nathan Emerson, CEO of Propertymark:
“Despite considerable political and economic uncertainty, it is positive to see the housing market deliver sustained momentum over the last twelve months. Looking at industry data, there were around 82,000 additional housing transactions last year compared to the year previous, which directly underlines growing consumer confidence and affordability in many regions.
“As we further embark into 2026, there are encouraging signs that the housing market will continue to deliver growth. However, with inflation seeing a slight increase, there could be potential hesitation from the Bank of England regarding further dips in base rate in the short term or until conditions prove supportive.”
Darrell Walker, group sales director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries:
“Today’s data is encouraging and shows that prices maintained strength in the build-up to the Autumn Budget. This demonstrates that, despite the uncertainty around the announcement, bricks and mortar remained in demand – this trend has continued in the first few weeks of this year.
“Indeed, we’ve already seen the market moving past the usual festive slowdown, and the general feeling is that momentum is building. Rightmove’s HPI showed a 2.8% increase in January (the largest monthly jump since 2015), painting a picture of a market on the front foot. With forecasts of further Bank of England rate cuts and lower borrowing costs, we’re expecting demand to rise in the coming weeks.”
