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UK Home Prices Drop 1.8%, Recovery Expected by 2026

12/16/2025

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Story summary
  • UK home prices fell for the second consecutive month, dropping 1.8% to £358,138 in early December.
  • The decline stems from market saturation, uncertainty from November's budget, and the Mansion Tax on properties over £2 million.
  • The average price is now 0.6% lower than last year, signaling a yearly downturn.
  • Experts expect a potential recovery in 2026, supported by anticipated interest rate cuts and seasonal market activity.