UK House Price Index for December 2025
The latest UK House Price Index shows that:
The average monthly rate of house price growth in December was -0.7%.
Average UK house price annual inflation was 2.4% in the 12 months to December 2025.
As a result, the average UK house price currently sits at £270,000.
Here are some thoughts from the Industry.
Damien Jefferies, Founder of Jefferies London, commented:
“December’s figures reflect the wider theme of the UK property market in 2025, which has been one of resilience in the face of wider economic uncertainty and, whilst seasonality may influence short-term price trends, the strength of the market is clear when analysing the continued increases in property values seen on an annual basis.
At the higher end of the market, particularly in London, we’re seeing buyers remain highly selective, but also increasingly confident in negotiating realistic value.
This recalibration is healthy and ensures the market enters 2026 on firmer footing, with more realistic pricing dynamics across both prime and mainstream segments helping to set a firm foundation for another year of property market prosperity.”
Verona Frankish, CEO of Yopa, commented:
“While house prices have cooled slightly on a month to month basis, it’s important to note that this data relates to December market conditions, a month that is traditionally one of the quietest points in the housing calendar ahead of the Christmas holidays.
The more important takeaway is that annual growth remains positive at 2.4% and, notably, first-time buyers are continuing to drive a relatively stronger degree of price appreciation, which highlights their determination to realise the dream of homeownership.
This sustained activity is helping to underpin the wider market and should provide a solid base for momentum for 2026.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“The latest figures show that the UK housing market finished 2025 in reliably steady fashion, with annual growth remaining positive despite a slight seasonal monthly adjustment.
London continues to trail in percentage terms, but at an average of over £551,000, the London market is hardly on its knees.
The capital historically lags behind the rest of the UK when it comes to market adjustments and a return to positive growth, but when the tide turns in London, it turns quickly and so we expect a return to upward price appreciation sooner, rather than later.”
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