Data from mortgage giant the Halifax revealed that average property prices stalled in November, but while prices are falling in some area, they are still surging elsewhere
House prices are predicted to grow slowly next year after stalling last month, experts say.
Figures from mortgage lender the Halifax show average property prices all-but stalled in November, rising by just £138 to albeit new record high of £299,89 and close the breaking the £300,000 mark.
Economists say “jitters” ahead of the Budget dampened appetite. But with the prospect of another Bank of England rate cut as early as this month, they believe price growth could pick up in early 2026.
While prices nationally may have remained steady, some regions performed much better than others, according to the Halifax. For example, average property prices in Northern Ireland leapt nearly 9% year-on-year, to £220,716, up from 7.9% in October. The region, home to more than 1.9 million people, has seen the supply of homes falling well short of demand. A report from Danske Bank earlier this year said planning applications in Northern Ireland are at the lowest level since 2002.
On the other end of the scale, Greater London still continues to struggle, with average prices falling by 1% to a typical £539,766 last month.
Across the UK, the annual growth in prices slowed sharply last month, from 1.9% to 0.7%. Amanda Bryden, head of mortgages at the Halifax, said it was the weakest since March 2024, “though this largely reflects the base effect of much stronger price growth this time last year.”
She continued: “Even with the changes to stamp duty back in spring and some uncertainty ahead of the autumn Budget, property values have remained steady. While slower growth may disappoint some existing homeowners, it’s welcome news for first-time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015.
“Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years. Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
Annual house price growth of 3.7% was recorded in Scotland in November, with the average property value at £216,781. In Wales, average property values rose by 1.9% year-on-year to stand at £229,430. In England, the North West recorded the highest annual growth rate, with property prices rising by 3.2% annually to £245,070. Despite its fall, London remains the most expensive part of the UK.
Jason Tebb, president of OnTheMarket, said the housing market had shown “considerable resilience” in 2025, but added: “National average figures conceal significant regional differences, with the market performing stronger in the north than the more expensive south, where affordability is more of an issue.”
Iain McKenzie, chief executive of The Guild of Property Professionals, said: “What continues to shape conditions on the ground is the higher supply of homes on the market compared to last year. Buyers have more choice than they’ve had in years, and that increase in supply is naturally keeping a lid on price growth in the short-term.”
Karen Noye, a mortgage expert at wealth manager Quilter, said: “The dust has now settled post-Budget, giving borrowers a clearer view of what the early months of 2026 may look like. Affordability remains the biggest hurdle. Inflation has eased and there is growing expectation of a first rate cut in December, but mortgage pricing is still sensitive to shifts in swap rates (which lenders use to price mortgages) and global pressures. Fixed rates have dipped, yet progress is gradual and high living costs continue to limit how far borrowing power can stretch, particularly for first-time buyers.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “House prices haven’t been going anywhere fast for a while, and in November, they almost stood still. We’re set for a particularly sluggish year for property overall, with average prices up just 0.7% over the year so far – well behind inflation. The stagnation owes a great deal to uncertainty. It’s not just the pre-Budget jitters that pervaded the market and persuaded buyers to wait things out, it’s also the weakening of the labour market that’s making some people worry about taking on new financial responsibilities.
“The new year could see things pick up a little. There’s a decent chance of a (Bank of England base) rate cut later this month, and mortgage rates have continued to fall. Given that wages are rising faster than both inflation and house prices, it could help bring properties within reach. Coupled with the renewed enthusiasm we often see in January, this could be enough to perk the market up.”
Average house prices and the annual change, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data):
- East Midlands, £246,002, 1.4%
- Eastern England, £334,795, minus 0.1%
- London, £539,766, minus 1.0%
- North East, £180,939, 2.9%
- North West, £245,070, 3.2%
- Northern Ireland, £220,716, 8.9%
- Scotland, £216,781, 3.7%
- South East, £388,207, minus 0.3%
- South West, £306,271, 0.3%
- Wales, £229,430, 1.9%
- West Midlands, £261,420, 1.3%
- Yorkshire and the Humber, £216,159, 1.8%