The UK housing market has remained steady in 2025 with an annual growth of just 0.7%, the weakest rate since March 2024.
House prices were broadly unchanged in November, rising just £139 on October’s figure to now average at £299,892 according to the latest data from Halifax.
Market activity this year has been shaped by changes to Stamp Duty in the spring and the uncertainty in the autumn ahead of the Budget.
Although affordability continues to be a challenge, there is good news as wage growth combined with more favourable mortgage rates are helping to ease the situation and are giving buyers much-needed confidence.
Looking ahead to 2026, Halifax expects property prices to rise modestly, with steady market activity and further interest rate reductions.
Buyers are looking to the Bank of England which is due to announce its final rate decision of the year on Thursday with many economists predicting a cut of a quarter of one percentage point to 3.75%.