House prices are expected to have a gradual increase in the upcoming year following a recent slowdown, as per experts. The latest data from mortgage provider Halifax indicates that average property prices almost stagnated in November, edging up by a mere £138 to reach a new high of £299,898, nearly reaching the £300,000 milestone.
Economists attribute this sluggish growth to pre-Budget uncertainties, anticipating a potential Bank of England rate cut in the near future, which could lead to a resurgence in price appreciation in early 2026.
While national prices remained stable, certain regions outperformed others, with Northern Ireland witnessing a significant surge of almost 9% in average property prices year-on-year, reaching £220,716, driven by a severe housing supply-demand imbalance. In contrast, Greater London continued to struggle, experiencing a 1% decline in average prices to £539,766 last month.
The annual price growth rate across the UK notably decelerated from 1.9% to 0.7% in the previous month. Amanda Bryden, head of mortgages at Halifax, noted that this was the slowest growth rate since March 2024, primarily due to a comparison with robust price increases from the previous year.
Bryden added that despite uncertainties surrounding the Budget and recent changes to stamp duty, property values have remained steady, offering a positive outlook for first-time buyers due to improved affordability compared to previous years.
Annual house price growth in Scotland stood at 3.7% in November, with the average property value at £216,781, while Wales saw a 1.9% increase year-on-year, reaching £229,430. In England, the North West led in annual growth at 3.2%, with average property prices at £245,070, although London retained its status as the most expensive region in the UK.
Industry experts like Jason Tebb from OnTheMarket and Iain McKenzie from The Guild of Property Professionals highlighted the regional disparities in the housing market, emphasizing the impact of supply levels on pricing dynamics.
Mortgage specialist Karen Noye from Quilter noted that post-Budget clarity has provided borrowers with a clearer outlook for early 2026, mentioning that affordability remains a key concern despite expectations of a rate cut.
Sarah Coles, head of personal finance at Hargreaves Lansdown, expressed a cautious outlook for the property market, citing stagnant growth and uncertainties affecting buyer sentiment, but remained hopeful for a potential upturn in the new year driven by anticipated rate cuts and falling mortgage rates.