UK house prices demonstrated stability in November 2025, with average property values remaining flat following a modest 0.5% increase in October, according to Halifax. Despite the steady month, annual growth cooled significantly to 0.7%, its softest rate since March 2024. This slowdown reflects a waning momentum amid regional disparities and ongoing economic uncertainties.

Regional Trends and Market Dynamics

The average UK home price in November nudged up by just £139 to a record £299,892, underscoring the market’s relative stability throughout 2025. Amanda Bryden, Head of Mortgages at Halifax, attributed the subdued annual growth largely to the base effect from stronger price rises during the previous year. Bryden also highlighted that despite stamp duty changes earlier this year and uncertainty tied to the Autumn Budget, property prices have remained broadly steady.

Regional performance revealed a marked North-South divide. Northern Ireland led with an 8.9% annual increase, bringing average prices to £220,716. Scotland followed with a 3.7% rise to £216,781, and Wales recorded a 1.9% gain to £229,430. Within England, the North West saw the strongest growth at 3.2%, closely trailed by the North East at 2.9%. Conversely, London experienced a 1.0% decline, with the South East and Eastern England registering slight drops of 0.3% and 0.1%, respectively. Nevertheless, London remained the priciest region, with average values around £539,766.

Housing Market Activity and Affordability Outlook

Data from HM Revenue & Customs showed a 1.8% rise in UK home sales to 98,450 transactions in October, yet this volume was still 2.1% below the year-ago level. Meanwhile, Bank of England figures indicated a 1.0% drop in mortgage approvals for house purchases to 65,018, down by 4.9% year-over-year. The Royal Institution of Chartered Surveyors (RICS) described the sales market as “subdued,” with a negative net balance of new buyer inquiries worsening to -24% in October from -21% in September.

Despite these mixed signals, affordability for first-time buyers has improved significantly. Bryden noted it is at its strongest since late 2015, supported by lower mortgage costs relative to income. Mortgage payments as a percentage of average earnings have reached their lowest level in approximately three years, offering a silver lining amid slower price growth.

Stability: Market Outlook

Looking ahead, Halifax expects gradual house price growth to persist into 2026, sustained by steady market activity and anticipated further interest rate reductions. The market’s current stability, reflected in record-high average prices coupled with improving affordability, may continue to shape UK housing dynamics throughout the coming year.