House prices are expected to see gradual growth in the upcoming year following a recent stagnation, as per industry experts. Data from mortgage provider Halifax indicates that average property prices nearly stalled in November, inching up by just £138 to reach a new high of £299,889, nearing the £300,000 threshold.
Economists attribute this sluggish growth to pre-Budget uncertainties, but with the possibility of a Bank of England rate cut in the near future, they anticipate a pickup in price growth early next year. While national prices remained steady, certain regions outperformed others. For instance, Northern Ireland saw a significant 9% annual increase in average property prices to £220,716, driven by a housing supply shortage compared to demand.
Conversely, Greater London continues to face challenges, with prices dropping by 1% to an average of £539,766 last month. The UK witnessed a sharp decline in annual price growth from 1.9% to 0.7% in November. Amanda Bryden, head of mortgages at Halifax, noted that this was the weakest growth since March 2024, largely influenced by the stronger growth seen a year earlier.
Despite the slower growth rate, Bryden highlighted that property values have remained stable, offering positive news for first-time buyers as affordability has improved. Looking ahead, experts anticipate a gradual rise in property prices through 2026, supported by stable market activity and expectations of further interest rate cuts.
Notable annual house price growth figures include a 3.7% increase in Scotland to £216,781, a 1.9% rise in Wales to £229,430, and a 3.2% surge in the North West of England to £245,070. Despite the decline, London retains its position as the priciest location in the UK.
Industry voices like Jason Tebb from OnTheMarket and Iain McKenzie from The Guild of Property Professionals emphasized the market’s resilience amid regional disparities in performance. Mortgage expert Karen Noye from Quilter highlighted affordability challenges post-Budget, citing inflation and interest rate dynamics as key factors influencing borrowing power.
Commenting on the market outlook, Sarah Coles, head of personal finance at Hargreaves Lansdown, expressed a cautious optimism for a potential improvement in the new year, buoyed by anticipated rate cuts and falling mortgage rates. She highlighted the impact of wage growth on affordability and the potential for market revitalization in the coming months.
