The average UK property price in December fell to its lowest level since summer, as growth slowed toward the end of 2025.
House prices dropped by 0.6% between November and December, from £299,544 to £297,755, according to Halifax’s latest house price index.
The average UK property price is the lowest it has been since June 2025, based on the lender’s index.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
In the 12 months to December, annual house price growth slowed to 0.3%, down from 0.6% in the year to November, carrying on a downward trend since the start of 2025.
Annual house price growth in the year to January 2025 was 2.9%.
Amanda Bryden, head of mortgages at Halifax, was positive about the housing market in 2026 despite the December downturn.
“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,” she said.
“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.”
Bryden added the house price to income ratio was at its lowest level in over a decade in December.
It comes after the housing market suffered a turbulent year in 2025, with the run up to the end of the stamp duty tax break in spring seeing a rush of transactions, followed by a slowdown in activity after the new regime came into effect.
A usual summer uptick was short-lived, caused by speculation over what could be announced in the Budget, as mortgage approvals fell in October and November.
Alice Haine, personal finance analyst at online investment service Bestinvest by Evelyn Partners, said: “The softer December data does not tell the full story across 2025, with the housing market proving surprisingly resilient despite a myriad of challenges.”
What's happening in the UK housing market?
Across the UK, Northern Ireland continues to show the strongest house price growth, year-on-year, according to Halifax’s latest index.
Prices in the nation went up by 7.5% on average in the 12 months to December, with a typical home there costing £221,062.
Scotland saw steady property price growth, recording a rise of 3.9% over the same time period. Buyers there can expect to pay £217,775 on average.
Wales saw prices rise by 1.6% over the year with the average cost of a home £230,233.
In England, the north east was the region that had the highest annual growth, with average prices increasing by 3.5% to £181,798. Then followed the north west which saw growth of 2.8%, taking the average house price to £245,323.
Three English regions saw property prices fall in the 12 months to December, according to Halifax – eastern England, greater London and the south east.
Property prices there dipped by 0.8% (£333,617), 1.3% (£539,086) and 0.9% (£386,692), respectively.
The south west of England recorded growth of just 0.1% over the year, with the average property price there now £306,618.
