Halifax House Price Index December 2025
House prices in December 2025 were 0.3% higher compared to the same month a year earlier.
UK house prices dipped in December
• House prices dipped by -0.6% in December, following a -0.1% fall in November
• Average property price is now £297,755, the lowest since June
• Annual growth slowed to +0.3%, down from +0.6% in November
• Northern Ireland continues to be the UK’s strongest performing nation or region
Amanda Bryden, Head of Mortgages, Halifax, said:
“Average house prices fell by -0.6% in December, down £1,789 compared to November, with a typical property now costing £297,755, the lowest since June 2025. On an annual basis, growth slowed to +0.3%, down from +0.6% in November.
“While this may feel like a subdued close to the housing market in 2025, overall activity levels were resilient over the last year and broadly in line with the pre-pandemic average.
“Various forces are poised to somewhat buoy the market heading into 2026. While December’s monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind. Further, mortgage rates are already reducing following the latest Base Rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value.
“While affordability pressures persist, the house price to income ratio was at its lowest in over a decade in December, striking a positive note for those looking to purchase their first home.
“On this basis, and recognising the headwinds that may affect buying power – such as the slowing of wage inflation and flattening employment rates – we expect a modest rise in house prices during the year of between 1% and 3%.”
Nations and regions house prices
Northern Ireland continues as the strongest performing nation or region in the UK, with average
property prices rising +7.5% over the past year, with a typical home now costing £221,062.
In Scotland, the average home now costs £217,775, with the nation recording annual price growth of
+3.9% in December.
Property values in Wales rose +1.6% over the year, to an average of £230,233.
In England, the North East had the highest annual growth rate, as property prices rose by +3.5%, to
£181,798. This was followed by the North West, which saw growth of +2.8%, to £245,323.
Property prices in London fell by -1.3% over the course of 2025 to £539,086.
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