The UK housing market performed broadly in line with expectations over the last year, with limited annual growth of 0.7% lifting the average property price to a new record high of £299,892, the latest Halifax data shows.
Market activity was influenced by stamp duty changes that took effect at the beginning of April, but overall remained close to pre-pandemic levels.
Annual house price growth of 0.7% in the year to November is the weakest level since March 2024 (0.3%). Property prices have so far fallen four times on a monthly basis during 2025, and risen on seven occasions.
The typical UK house price has increased by 4.7% over the last three years, a rise of £13,565. This compares to a rise of 21.7% over the previous three-year period (2019 to 2022), an increase of £50,974.
Halifax now expects property prices to rise modestly in 2026, by between 1% and 3%, but says forecast uncertainty "remains high given the wider economic backdrop".
This compares to Rightmove, which predicts a 2% rise in asking prices next year, Savills' prediction of a 2.5% increase, and Nationwide forecasting growth of between 2-4%.
Amanda Bryden, head of Halifax Mortgages, commented: “2025 was one of the most settled years for UK house prices over the last decade. The average UK home now costs £299,892, up just 0.7% over the year, reaching a new record high price.
“The biggest talking point was the change to stamp duty thresholds in the spring, which led to a rush of buyers trying to beat the deadline. March was one of the busiest months ever for completed transactions, but this spike didn’t translate into a significant rise in prices, and activity levels soon returned to normal.
“While affordability remains challenging, the picture has improved compared to recent years, driven by a combination of above-inflation wage growth, lower interest rates and some expansion of eligibility criteria from mortgage lenders.
“For those taking their first steps onto the property ladder, monthly mortgage costs as a share of income are now at their lowest level since 2022, with the rate on a typical two-year first-time buyer mortgage (90% LTV) dropping by roughly 0.8 percentage points over the last year.
“The second half of the year was dominated by speculation about potential tax rises in the run up to the Autumn Budget. While this kept market confidence subdued for a time, both prices and activity broadly held steady.
“Looking ahead to 2026, we expect house prices to rise modestly, by somewhere between 1% to 3%. While wage growth is expected to slow and unemployment may edge higher, lower interest rates and easing inflation should help to gradually improve homebuyers’ purchasing power."
