House prices are expected to see a gradual increase next year following a recent period of stagnation, according to industry experts. Data released by the Halifax, a prominent mortgage lender, revealed that average property prices remained largely unchanged in November, inching up by a mere £138 to reach a new record high of £299,893, just shy of the £300,000 threshold.
Economists attribute this sluggish growth to pre-Budget uncertainties that impacted buyer confidence. However, with the possibility of another interest rate cut by the Bank of England in the near future, analysts anticipate a resurgence in price growth early in 2026.
While national prices experienced minimal movement, certain regions outperformed others. Notably, Northern Ireland saw a significant annual increase of almost 9% in average property prices, reaching £220,716, driven by a supply-demand imbalance highlighted by a Danske Bank report. Conversely, Greater London continued to struggle, with prices declining by 1% to an average of £539,766 in the previous month.
The overall annual price growth rate across the UK declined sharply from 1.9% to 0.7% in the latest data. Amanda Bryden, the head of mortgages at the Halifax, pointed out that this slowdown was primarily influenced by the strong price growth seen in the same period the previous year.
Looking ahead, industry professionals remain cautiously optimistic, expecting a gradual uptrend in property prices throughout 2026. Regional variations persisted, with Scotland recording a 3.7% annual growth in house prices, Wales showing a 1.9% increase, and the North West of England leading with a 3.2% rise.
Experts in the field emphasized the current surplus of homes available for sale compared to previous years, indicating that this increased supply is moderating price escalation for the time being. Factors such as affordability constraints and economic uncertainties continue to influence the housing market landscape, with the potential for a Bank of England rate cut and declining mortgage rates offering some hope for prospective buyers in the upcoming months.