Average house prices rose in November after a slight drop in October, according to official figures. The Office for National Statistics (ONS) reports a 0.3% monthly increase, taking the average price to £271,000 – a rise of £1,000. Over the 12 months to November, prices grew 2.5%, offering some reassurance to homeowners.
The market had slowed following April, amid concerns over housing policy in Chancellor Rachel Reeves’s second Budget and rising stamp duty costs, which led many buyers to postpone their plans. Affordability pressures persisted, exacerbated by stamp duty threshold changes earlier in the year.
October saw a small 0.1% fall in monthly prices as demand softened, but prices picked up again in November, though experts describe the rise as modest. Paresh Raja, chief executive of Market Financial Solutions, notes the market slowdown during the run-up to the Autumn Budget, while Nick Leeming, chairman of Jackson-Stops, says the market was largely in a holding pattern towards the end of 2025.
Regionally, annual growth varied: average house prices in England rose 2.2% to £293,000, Wales increased 0.7% to £209,000, and Scotland climbed 4.5% to £193,000. London was the only English region to see a decline, with prices falling 1.2%.
Leeming adds that clarity from the Chancellor’s fiscal plans helped restore confidence, setting the stage for increased market activity in the New Year. Buyers sidelined by previous uncertainty are now returning, encouraged by anticipated cuts to Bank of England interest rates. Experts predict two further rate reductions this year, easing costs for borrowers and supporting market activity.
Fixed mortgage rates have dropped sharply from recent peaks. MoneyfactsCompare reports the average two-year fixed deal now stands at 4.77%, down from 6.86% in July 2023, while five-year deals average 4.87%, down from 6.51% in October 2022. Improved affordability is also attracting first-time buyers, particularly 18-34-year-olds, one in three of whom plan to buy a new or first home this year.
Lenders have increased borrowing limits and introduced lower-deposit deals, with rates as low as 3.96% for 10% deposits, making monthly payments more manageable. Nationwide has also eased affordability rules, allowing borrowing of up to six times annual income, up from 5.5 times previously.
As borrowing costs remain a consideration, securing competitive mortgage rates and professional advice remains essential for first-time buyers, homeowners, and buy-to-let investors alike.
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