Halifax: As growth slows, UK home prices are at their lowest point since the summer

According to Halifax's most recent house price index, property prices decreased by 06 percent month over month during a typical Christmas season slowdown

As growth slowed toward the end of 2025, the average price of UK real estate in December dropped to its lowest level since summer.

Halifax's most recent house price index shows that between November and December, house prices fell by 0.6 percent, from 299,544 to 297,755.

According to the lenders index, the average price of real estate in the UK is at its lowest point since June 2025.

Following a declining trend since the beginning of 2025, annual house price growth slowed to 0.3 percent in the year ending in December from 0.6 percent in the year ending in November.

In the year ending in January 2025, there was a 2.9 percent annual increase in home prices.

Despite the December decline, Halifax's head of mortgages, Amanda Bryden, was optimistic about the housing market in 2026.

"This should now be starting to unwind, even though December's monthly decline in prices was probably related to uncertainty in the later part of the year," she stated.

Additionally, there are more lending options available for borrowers at a higher loan-to-value, and mortgage rates are already declining as a result of the most recent Base Rate cut. The "

According to Bryden, the house price to income ratio was at its lowest point in more than ten years in December.

It follows a turbulent year for the housing market in 2025, with a surge in transactions leading up to the end of the stamp duty tax break in the spring and a subsequent slowdown following the implementation of the new regime.

Mortgage approvals declined in October and November, following a typical summer uptick that was short-lived due to speculation about potential budgetary announcements.

"The softer December data does not tell the full story across 2025, with the housing market proving surprisingly resilient despite a myriad of challenges," stated Alice Haine, personal finance analyst at the online investment service Bestinvest by Evelyn Partners. A "

What is the state of the housing market in the United Kingdom?

According to Halifax's most recent index, Northern Ireland continues to exhibit the strongest annual growth in house prices throughout the United Kingdom.

In the 12 months leading up to December, prices nationwide increased by an average of 7.5 percent, with a typical home costing £221,062.

Scotland recorded a 3.9 percent increase in property prices during the same period, indicating consistent growth. The average price that buyers will pay there is 217,775.

The average cost of a home in Wales increased by 1.6% over the course of the year to 230,233.

The northeast of England saw the largest annual growth, with average prices rising by 3.5 percent to 181,798. The northwest then experienced growth of 2.8%, bringing the average home price to 245,323.

According to Halifax, eastern England, greater London, and the southeast, three English regions saw a decline in real estate prices in the year ending in December.

There, the prices of real estate fell by 0.8 percent (333,617), 1.3 percent (539,086), and 0.9 percent (386,692), respectively.

The average property price in the southwest of England is currently 306,618, a mere 0.1 percent increase over the previous year.