House prices are expected to experience gradual growth in the upcoming year following a period of stagnation last month, as per experts. Recent data from mortgage provider Halifax reveals that average property prices saw minimal increase in November, rising by £138 to reach a new high of £299,890, inching close to the £300,000 threshold.
Economists attribute this sluggish growth to pre-Budget uncertainties, leading to subdued market activity. However, with the likelihood of a Bank of England rate cut in the near future, analysts anticipate a rebound in price growth by early 2026.
While national house prices remained steady, regional disparities were evident, with Northern Ireland witnessing a significant 9% year-on-year surge in average property prices to £220,716. In contrast, Greater London continued to struggle, with prices declining by 1% to £539,766.
The overall annual price growth in the UK notably decelerated from 1.9% to 0.7% in the recent period. Amanda Bryden, head of mortgages at Halifax, noted that while this represents the weakest growth since March 2024, it aligns with a previous period of robust price escalation.
Bryden highlighted that despite adjustments in stamp duty and pre-Budget uncertainties, property values have held steady. This steadiness is seen as a positive for first-time buyers due to enhanced affordability compared to previous years.
Scotland recorded a 3.7% annual house price growth in November, with an average property value of £216,781. Meanwhile, Wales saw a 1.9% increase to reach an average value of £229,430. In England, the North West led in annual growth at 3.2%, with prices averaging £245,070. Despite its decline, London maintains its status as the priciest region in the UK.
Industry experts Jason Tebb and Iain McKenzie noted regional market disparities and increased housing supply impacting short-term price growth trends. Mortgage expert Karen Noye highlighted affordability challenges despite easing inflation and potential rate cuts.
Sarah Coles, head of personal finance at Hargreaves Lansdown, emphasized the sluggish property market performance and the influence of economic uncertainties on buyer behavior. However, she expressed optimism for a potential market improvement in the new year, driven by decreasing mortgage rates and rising wages.
Overall, market observers anticipate a gradual uptick in property prices into 2026, supported by stable market activity and potential interest rate adjustments.