Average UK house prices increased by 2.5%, to £271,000, in the 12 months to November, up from 1.9% in October, the latest UK House Price Index from the Land Registry shows.
Average house prices increased by 2.2% in England, 0.7% in Wales, and 4.5% in Scotland in the 12 months to November.
The North East was the English region with the highest house price inflation, at 6.8%, up from 5.2% in the 12 months to October.
Annual house price inflation was lowest in London. Prices fell by 1.2% over the year, compared with a fall of 2.6% in October.
Jason Tebb, president of OnTheMarket, commented: “Property values continued to rise on an annual basis in November, with the average price £6,000 higher than a year ago. In the run up to the delayed Autumn Budget, caution and price sensitivity prevailed as some would-be movers paused amid concern about potential property tax changes.
"However, since the Budget, our own property sentiment report reveals that over half of sellers and renters across the country are pressing ahead and even accelerating their plans, a positive sign for market activity this year.
"The average UK house price conceals notable regional differences, with values in London contracting on a yearly basis. Increased supply, low buyer demand and stretched affordability in the capital where values can be significantly higher than elsewhere in the country are all playing their part, along with higher living costs.
"With inflation rising to 3.4% in the year to December, there will be concerns that this will slow the pace of future Bank of England base rate reductions. Six base-rate cuts in the past 18 months have had a huge impact on the market, boosting buyer and seller confidence and activity, although affordability remains a challenge.”
Jeremy Leaf, north London estate agent and former RICS chairman, said: “The most comprehensive of all the property reports, this one from the ONS – though a little dated – confirms what we’re seeing on the ground. Talk of a possible market correction was premature. Activity is holding up better than expected, supported by falling mortgage rates with the overwhelming majority of transactions completing despite some hard bargaining.
“Worries about what was likely to be included in the Budget inevitably prompted many to press the pause rather than the stop button. The relief is now palpable.
“Looking forward, the amount of property for sale – particularly flats – and likely slower pace of base-rate reductions, particularly given the latest inflation news, as well as some employment nervousness, means no significant price rises are likely for the time being at least.”
Tomer Aboody, director of MT Finance, commented: “With the Budget now out of the way, the uncertainty and hesitancy is also over and buyers are ready to make their move. Despite a lot of negative speculation beforehand, the Budget left the property market mostly unscathed.
“With sellers coming to the market and buyers who have delayed moves now ready to proceed, as well as lower mortgage rates, the scene looks set for a bounce.
“With the money markets expecting another base rate cut from 3.75%, although perhaps not at the February meeting of the Bank of England given the latest inflation figures, the improved affordability this will bring when it comes will encourage movement – and the market needs that encouragement.”
Paresh Raja, CEO of Market Financial Solutions, added: “The market suffered in October and November from all the turbulence building up to the Autumn Budget. We saw how that impacted house prices in some of the other major indices, and the ONS data reaffirms the growth slowdown. But what really matters is what comes next; the Bank of England cut the base rate just before Christmas, there are expectations of two more base rate cuts this year, and a lot of the political uncertainty has passed, meaning the stage is set for the property market to perform well in 2026.
“Recent HPIs, including Rightmove’s, show momentum steadily building. We're certainly seeing a lot more demand and intent in the market in January, and with another rate cut unlikely in February, it is now up to lenders to work with brokers to deliver fast, flexible products that help borrowers seize emerging opportunities. Doing so will turn early optimism into sustained activity and keep the market on track as the year unfolds.”
