Average UK house prices increased by 2.5%, to £271,000, in the 12 months to November 2025, according to the latest figures from the Office for National Statistics. The annual growth rate is up from 1.9% in the 12 months to October 2025.
“UK annual house price inflation slowed in December following the rise in November with the average UK house price now at around £270,000,” ONS head of housing market indices Ian Boreham said.
“Across the UK Wales and Scotland have seen the biggest increases in annual growth rates while London continues to be the only English region showing an annual fall this month with inner London boroughs seeing the biggest declines in house prices.”
Industry commentary
Iain McKenzie, CEO of The Guild of Property Professionals:
“The latest UK HPI figures point to a housing market that was stabilising rather than slowing.
“The modest monthly dip in December is typical for the time of year and, importantly, is less about weakening demand and more about seasonal dynamics and increased supply. More importantly, transaction levels remained robust, with over 100,000 sales in the month and activity across 2025 running above both 2024 and pre-pandemic norms. This tells us that underlying demand remained resilient.
“We are already seeing sentiment improve in early 2026. Rising wages, easing borrowing costs and a highly competitive mortgage market are expected to support activity levels, with many agents anticipating an uptick in sales volumes this year. At the same time, a growing supply of homes for sale is giving buyers more choice and will help keep price growth at a sustainable pace.
“Overall, the outlook for 2026 is one of steady, sustainable progress. With prices forecast to rise by around 3.3% and market fundamentals strengthening, we expect a more balanced and accessible housing market to emerge, benefiting both buyers and sellers alike.”
Paresh Raja, CEO of Market Financial Solutions:
“Buyer enquiries and sales instructions seem to have picked up across the first seven weeks of the year, suggesting confidence is returning. Future base rate cuts will help boost this confidence further, but there is also a more pragmatic view being taken, with many brokers and buyers not wanting to waste time in getting a deal done. The coming months will be telling, and this morning’s CPI data was encouraging – confidence and enquires will need to convert into more transactions, and this will help inject a little more life back in the UK property market this year.”
Tomer Aboody, director of specialist lender MT Finance:
“The housing market in the UK will always maintain a certain level of activity due to demand outweighing supply, but to improve confidence and see some significant growth, we need a friendly government who will look to help the market either by easing off on stamp duty, helping investors by reducing the tax on rental income or via the Bank of England reducing interest rates further.”
Nathan Emerson, CEO of Propertymark:
“A slowing in the annual growth of house prices signals ongoing affordability pressures and cautious buyer sentiment. While modest price adjustments may improve access for some purchasers, reduced activity can dampen overall market confidence.
“Ensuring a supportive lending environment and increasing housing supply will be critical to maintaining stability and encouraging sustainable levels of market activity.”
Richard Donnell, executive director at Zoopla:
“Our latest data shows a rebound in demand for homes but running 8% below this time last year, which points to a continued slowdown in price growth over 2026.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“Momentum has strengthened since January – enquiries and viewings are up, pricing is holding where homes are sensibly listed, and the spring market is shaping up to be far more active than many expected.”
