Story perspectives

UK House Prices Stable in December, Recovery Expected

12/6/2025

Summary

Halifax Reports Stability

Halifax reported that UK house prices remained stable in December 2025, with the average property value at £299,892, a record high.
Monthly growth remained at 0.0%, while annual growth slowed to 0.7%, the lowest since March 2024.
The North West posted the highest annual growth at 3.2%, while London and South East declined.
Affordability has improved, benefiting first-time buyers.
Analysts expect the market to recover due to anticipated rate cuts.

Summary

UK Housing Adaptation

In December 2025, the UK housing market shows signs of adaptation amid ongoing economic challenges.
Prices remain stable, but many aspiring buyers face unaffordable costs as annual pay growth registers 0.5%.
Fixed mortgage rates have decreased, but high living costs limit borrowing capacity for first-time buyers.
Affordability is best since late 2015 when compared with average incomes, though Northern market strength contrasts with Southern affordability issues.

History

Historical Context

The Help to Buy scheme was launched by the UK government in 2015 to support first-time buyers amid a recovering housing market, contributing to a 9.5% rise in house prices that year. As of 2023, average house prices stand at £299,892, reflecting ongoing affordability challenges despite past initiatives aimed at stimulating market growth and addressing a significant housing shortfall.

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Halifax Reports Stability

Halifax reported that UK house prices remained stable in December 2025, with the average property value at £299,892, a record high.
Monthly growth remained at 0.0%, while annual growth slowed to 0.7%, the lowest since March 2024.
The North West posted the highest annual growth at 3.2%, while London and South East declined.
Affordability has improved, benefiting first-time buyers.
Analysts expect the market to recover due to anticipated rate cuts.

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