House prices are expected to see gradual growth in the upcoming year following a recent slowdown, as per experts. The latest data from mortgage lender Halifax reveals that average property prices remained largely unchanged in November, inching up by just £138 to reach a new record high of £299,895, nearly reaching the £300,000 mark.
Economists attribute the sluggish growth to pre-Budget uncertainties, but anticipate a potential boost in price growth with the possibility of a Bank of England rate cut in the near future. While nationwide prices remained stable, certain regions performed notably better than others. For instance, Northern Ireland saw a significant annual increase of nearly 9% in average property prices, reaching £220,716, driven by a housing supply shortage.
Conversely, Greater London continues to face challenges, with average prices decreasing by 1% to £539,766 last month. The annual price growth rate in the UK slowed from 1.9% to 0.7% in the same period, marking the weakest growth since March 2024, attributed in part to the base effect of stronger growth the previous year.
Amanda Bryden, head of mortgages at Halifax, noted that despite slower growth, property values have remained steady, benefiting first-time buyers with improved affordability. With expectations of further interest rate reductions and stable market activity, experts anticipate a gradual increase in property prices in 2026.
Scotland saw an annual house price growth of 3.7% in November, with average property values standing at £216,781. In Wales, prices rose by 1.9% year-on-year to reach £229,430, while the North West region in England recorded the highest annual growth rate at 3.2%, with property prices averaging £245,070. Despite its decline, London remains the priciest area in the UK.
Industry experts like Jason Tebb and Iain McKenzie highlighted the regional variations in the housing market’s performance, emphasizing the impact of supply levels on price growth. Mortgage expert Karen Noye pointed out that affordability remains a key concern for borrowers, despite easing inflation and expected rate cuts. Meanwhile, Sarah Coles emphasized the sluggish property market trend due to uncertainty and labor market challenges, but expressed optimism for a potential market upturn in the new year.