House prices barely shifted in November, with the average home increasing by only around £138. Although this was a very small rise, it still nudged the typical UK property value to a new record high, according to Halifax’s latest figures. The market has been moving gently for months, and November was no different.
Halifax reported that the monthly change for November was effectively flat, following the modest increase seen in October. Even so, the average house price has now reached £299,892, continuing the quiet but steady trend we have seen throughout the year.
Annual growth, however, slowed sharply. Property values were only 0.7% higher than a year ago, compared with the 1.9% rise recorded in October. This softer figure is largely due to the strong price increases seen last year, which makes today’s market look calmer by comparison.
Amanda Bryden, head of mortgages at Halifax, explained that although prices barely moved in November, the slight rise was still enough to bring the average home cost close to the £300,000 mark. She described 2025 as one of the most stable housing market years in the past decade.
She added that the slowdown in annual growth should be understood in context. A year ago, house prices were rising far more quickly. Even with changes to stamp duty earlier this year and uncertainty leading up to the autumn Budget, overall prices have remained steady and predictable.
For homeowners, the gentler growth may feel underwhelming. But for first-time buyers, a quieter market offers some relief. When compared with household incomes, housing affordability is now the strongest it has been since late 2015, giving new buyers a better chance of securing a home.
Bryden also highlighted that, despite higher interest rates over the past year, mortgage payments as a share of income have eased. This is partly due to incomes rising and partly due to lenders beginning to trim their fixed-rate mortgage deals, giving borrowers some much-needed breathing space.
Looking forward, Halifax expects property values to continue rising gradually into 2026. Market activity remains steady, and there is widespread expectation of further interest rate reductions, which could support a slow but positive upward trend in prices.
Across the UK, the picture is far from uniform. Northern Ireland remains the strongest region, with property values rising by 8.9% over the past year. Scotland and Wales also recorded annual increases of 3.7% and 1.9% respectively, showing a healthy level of demand.
In England, the North West led the growth charts with an annual rise of 3.2%. However, several southern regions saw mild declines. London and Eastern England both posted annual falls, and the South East also edged lower, reflecting affordability pressures in the country’s most expensive markets.
Despite this softening, London continues to hold its place as the priciest region in the UK, with the average home now costing £539,766. The gap between London and the rest of the country remains significant, and affordability in the capital continues to be a major challenge.
Property experts say the national picture hides strong regional differences. Jason Tebb of OnTheMarket described 2025 as a resilient year for housing overall, but noted that the north is outperforming the south due to more realistic pricing and stronger demand.
According to Iain McKenzie of The Guild of Property Professionals, the increase in homes available for sale compared with last year is shaping much of today’s market. Buyers now have more choice than they have had in years, and this greater supply is naturally keeping price growth subdued in the short term.
Mortgage expert Karen Noye from Quilter said the market has steadied following the Budget, and borrowers now have a clearer sense of where things may be headed in early 2026. Affordability remains the largest hurdle, as mortgage pricing is still sensitive to wider financial movements and high living costs.
Noye explained that fixed-rate mortgages have dipped but only slightly, and many buyers still feel the squeeze. Lenders are becoming more competitive in lower loan-to-value ranges, while higher LTV deals remain on the expensive side, which affects many first-time buyers most.
She added that many homeowners coming to the end of their fixed-rate deals are choosing shorter-term fixes as they wait to see how borrowing costs change next year. With wages rising faster than both inflation and house prices, there is cautious optimism that the new year may bring improved conditions for buyers.
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