House Price Index Dec 2025
Transactions in 2025 are on track to reach 1.2 million, broadly in line with the 10-year average. House price inflation was modest, with prices up 1.1% year on year. A clear north–south divide persists, with stronger price growth in northern England than in the south. Market activity was uneven across the year: transactions surged in March as buyers brought purchases forward to avoid higher stamp duty, while uncertainty ahead of the November Budget from August onwards weighed on activity in the second half. With affordability improving and ample homes for sale, momentum is expected to rebuild in 2026. We forecast gradual house price growth of around 2% as affordability continues to improve.
What’s happening nationally
House prices are down on average -0.2% this month and up on average +1.1% in the past year.
House prices have softened over the past month: -0.2% on average across the indices. Land Registry reporting November figures is +0.3%, Nationwide -0.4% in December, Halifax -0.6% in December and Rightmove reporting December asking prices is down -1.8%.
Annual house price growth is positive but the rate of growth slowed this month to 1.1% down from 1.4% last month. The indices report the following shifts in annual house price growth over the past month: Land Registry (2.5% vs 1.7%), Nationwide (0.6% vs 1.8%), Halifax (0.3% vs 0.7%) and Rightmove reporting asking prices (-0.6% vs -0.5%).
Note that there has been a change of methodology in the calculation of the Land Registry house price index. From February 2025 reporting, January 2023 became the new reference period for inflation rates. Land Registry has been re-referenced because the types of property being sold can change over time.
Indices based on:
Land Registry – registered property transactions in November.
Nationwide & Halifax – mortgage valuations in December
Rightmove – asking prices posted on Rightmove in December.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
| Index reports: | Monthly change | Annual change |
|---|---|---|
| Land registry | +0.3% | +2.5% |
| Nationwide | -0.4% | +0.6% |
| Halifax | -0.6% | +0.3% |
| Rightmove | -1.8% | -0.6% |
| Average change | -0.2% | +1.1% |
House prices in your area
Regional house prices
Year to date 2025 annual house price inflation is up +0.7% in Wales, +2.2% in England, +4.5% in Scotland and +7.1% in Northern Ireland.
There is a north-south divide in terms of annual house price growth. Areas in England with a fall or slowest growth in house prices include: London (-1.2%) and the South East (1.0%). Areas in England with stronger growth include the North East (+6.8%), the North West (4.1%) and Yorkshire & Humber (+3.7%).
Most expensive/ cheapest areas
In terms of average house price, the most expensive regions in the UK remain London (£553K), the South East (£381K) and the East of England (£338K). The cheapest regions are the North East of England (£167K), Northern Ireland (£193K), Scotland (£193K), Yorkshire & Humber (£209K) and Wales (£209K).
In terms of cities, the most affordable are: Aberdeen (£138K), Glasgow (£159K), Newcastle (£161K) and Sheffield (£177K). And, the most expensive cities in the UK are: London (£530K), Cambridge (£470K), Oxford (£447K), Bristol (£343K) and Bournemouth (£317K).
Prices by property type
House prices shifted in the last year for detached (+2.7%), semi-detached (+3.4%), terraced (+3.5%) properties and for flats/ maisonettes (0%).
| UK Region | Average price £ | Monthly change | Annual change |
|---|---|---|---|
| England | |||
| Nothern Ireland | |||
| Scotland | |||
| Wales | |||
| North West | |||
| Yorkshire and The Humber | |||
| North East | |||
| West Midlands | |||
| East Midlands | |||
| South West | |||
| East of England | |||
| South East | |||
| London |
| UK City | Average price | Annual change |
|---|---|---|
Market Monitor
2025 transactions are on track to hit 1.2m transactions. This will be 9% higher than last year and in line with the 10-year average.
November transactions of 100K are up 1% vs October (99k) and up 8% on transactions last November (93K).
Buyer demand falls in December and time to sell increases.
In December, buyer demand fell for the sixth successive month and new seller instructions held steady.
The average time to secure a buyer increased to 76 days in December up from 70 days in November according to Rightmove; above the 2025 average (which is 65 days).
How busy is the market?
- Not busy
- Normal
- Very busy
- Transactions in November are up
- Total transactions in November 2025 100K
- +1% versus last month
- +8% higher than last year
Homes for sale vs homebuyers
- Good availability of homes
- Normal
- Shortage of homes
- Buyer enquiries fall (-24% RICS Dec data) sixth successive monthly fall
- Seller instructions steady (0% RICS Dec data) unchanged
- Average stock per agent 56 in December; down from 61 last month (incl under offer/ Sold STC Rightmove)
Average speed of sale
- Fast
- Normal
- Slow
- Dec figure: 74 days to find a buyer, up from 70 days last month; above year to date average of 65 days (Rightmove)
What the experts say
Rightmove
“Average new seller asking prices fall by 1.8% (-£6,695) this month to £358,138. This larger than usual December drop means that prices are 0.6% (-£2,059) lower at the end of 2025 than in 2024. The uncertainty and gloom caused by rumours of property tax rises in November’s Budget from as early as August contributed to more subdued activity and pricing in the second half of the year: The number of new sellers coming to market in the first half of 2025 was 9% ahead of the first half of 2024, which reversed to 4% below 2024 across the second half of this year. Buyer demand was 3% ahead of 2024 across the first half of the year, but 6% behind in the second half. It’s still been a more positive year overall for sales, with the number of sales agreed 3% higher than in 2024. Improved buyer affordability and plenty of choice for buyers suggests a market more like the encouraging first half of this year rather than the second half in 2026, with Rightmove predicting that new seller asking prices will rise by 2%.”
Nationwide
“UK house prices ended 2025 on a softer note, with annual price growth slowing to 0.6%, from 1.8% in November, the slowest pace since April 2024. The high base for comparison can partly explain the slowdown (annual price growth was 4.7% in December 2024), although prices fell by 0.4% month on month, after taking account of seasonal effects. Despite the softer end to the year, the housing market in 2025 was ‘resilient’. Mortgage approvals remained near pre-Covid levels. April stamp duty changes created volatility. Activity spiked in March as purchasers brought forward transactions to avoid paying additional tax leading to some softness in the following months. With price growth well below the rate of earnings growth and a steady decline in mortgage rates, affordability constraints eased somewhat, helping to underpin buyer demand. Indeed, first-time buyer share of house purchase activity was above the long run average. Looking ahead, we expect housing market activity to strengthen a little further as affordability improves gradually via income growth outpacing house price growth and a further modest decline in interest rates. We expect annual house price growth to be in the 2% to 4% range next year.”
Zoopla (Hometrack)
“Housing sales on track to hit 1.2m in 2025, 9% higher than last year and in line with the 10 year average. While there are more home moves, this is not translating into faster levels of headline house price inflation. UK house prices are just 1.1% higher than a year ago. House prices are still adjusting to higher borrowing costs and increased buying costs after stamp duty reliefs changed in April. There is a clear north- south divide in price inflation and this is set to remain in 2026 Budget speculation reduced housing market activity in the final quarter of 2025 with the sharpest decline since the 2022 mini budget (demand -12% lower than a year ago and new sales agreed down -9%). It’s too late for the drop in sales agreed to hit 2025 housing transaction numbers – this will become apparent in housing transaction numbers in Q1 2026. Mortgage rate stability, higher incomes and mortgage affordability improvements support sales. First-time buyers are the largest buyer group in 2025 (39% of sales). House prices are projected to increase 1.5% over 2026 as housing affordability continues to steadily reset.”
Halifax
“Average house prices fell by -0.6% in December, down £1,789 compared to November, with a typical property now costing £297,755, the lowest since June 2025. On an annual basis, growth slowed to +0.3%, down from +0.6% in November. While this may feel like a subdued close to the housing market in 2025, overall activity levels were resilient over the last year and broadly in line with the pre-pandemic average. While affordability pressures persist, the house price to income ratio was at its lowest in over a decade in December, striking a positive note for those looking to purchase their first home. On this basis, and recognising the headwinds that may affect buying power – such as the slowing of wage inflation and flattening employment rates – we expect a modest rise in house prices during the year of between 1% and 3%.”
RICS
” The December 2025 RICS UK Residential Market Survey reveals that market activity remains subdued, with both buyer demand and agreed sales continuing to register negative readings. However, there are encouraging signs of a shift in sentiment, as respondents express greater optimism around the outlook for sales, both over the near-term and for the year ahead. This improved confidence appears to be underpinned by expectations of further monetary policy easing, alongside the removal of Budget-related uncertainty which had weighed on the market in recent months. For the year ahead, the balance of contributors are of the opinion that prices will return to growth.”
