UK house prices were virtually unchanged in November, with only a marginal monthly increase recorded, according to the latest Halifax House Price Index.
The lender reported a flat 0.0% month-on-month change, following a 0.5% rise in October. In cash terms, the average property price edged up by £138, pushing the typical UK home to a new record high of £299,892.
Annual house price growth slowed sharply to 0.7% in November, down from 1.9% the previous month, marking the weakest rate of growth since March 2024.
Amanda Bryden, head of mortgages at Halifax, said the stability reflected one of the calmest years for the housing market in a decade. She said that despite changes to stamp duty and political uncertainty around the autumn Budget, prices had remained steady.
She added that slower growth would be welcomed by first-time buyers, noting that affordability relative to income is now at its strongest since late 2015. Mortgage costs as a share of income are also at their lowest level in around three years, despite higher interest rates.
Looking ahead, Halifax said steady market activity and expectations of further interest rate cuts could support gradual price growth into 2026.
Regional divide widens
Northern Ireland remained the strongest-performing region, with prices rising 8.9% year-on-year to an average of £220,716. Scotland followed with annual growth of 3.7% and an average price of £216,781, while Wales recorded a 1.9% increase to £229,430.
In England, the North West saw the strongest annual growth at 3.2%, taking average prices to £245,070.
By contrast, parts of southern England recorded price falls. London and Eastern England both saw annual declines of 1.0%, while the South East fell by 0.3%. Despite this, London remains the most expensive region, with the average home costing £539,766.
Confidence tempered by affordability concerns
Jason Tebb, president of OnTheMarket, said the market had shown “considerable resilience” in 2025 but stressed that national averages masked sharp regional differences, with stronger performance in the north compared with affordability-strained southern regions.
Iain McKenzie, chief executive of The Guild of Property Professionals, pointed to increased housing supply compared with last year, giving buyers more choice and keeping a lid on price growth.
Mortgage expert Karen Noye of Quilter said post-Budget uncertainty had eased but affordability remained the biggest obstacle. While fixed mortgage rates have edged lower, she said progress remains slow and high living costs continue to constrain borrowing power, particularly for first-time buyers.
She also said remortgagers coming off older fixed deals are increasingly opting for shorter terms as they await clearer signals on borrowing costs in 2026.
The Government’s newly announced high-value council tax surcharge on homes worth over £2 million, due from April 2028, is not expected to affect current data. However, Ms Noye warned it may put pressure on asset-rich but cash-poor homeowners in future.
Sarah Coles, head of personal finance at Hargreaves Lansdown, described the current market as stagnant, with prices barely moving and running well behind inflation. She said uncertainty around the economy and a weakening labour market had dampened buyer confidence.
However, she added that a potential Bank of England rate cut and rising wages could help revive activity in early 2026.
Estate agent Jonathan Handford of Fine & Country said well-priced and well-presented homes were still attracting strong interest, but buyers are now far more selective, with increased competition among sellers.