Docklands News

UK house prices ended 2025 just 0.6% higher than at the end of 2024 after an unexpected 0.4% fall in December, according to Nationwide. The average home price slipped to £271,068, meaning values were lower in December than in any of the previous eight months. Prices peaked in May at £273,427. Experts attributed the slowdown in December to Budget-related uncertainty, which weakened buyer confidence. Despite muted price growth, affordability improved as earnings growth outpaced house prices and mortgage rates eased, boosting first-time buyer activity above its long-term average. Nationwide forecasts that house price growth will be between 2% and 4% in 2026, with the increase driven by gradual improvements in affordability and modest interest rate declines.

City AM (03/01/2026)   Financial Times (03/01/2026)   The Standard (03/01/2026)   The Times (03/01/2026)  

UK house prices ended 2025 just 0.6% higher than at the end of 2024 after an unexpected 0.4% fall in December, according to Nationwide. The average home price slipped to £271,068, meaning values were lower in December than in any of the previous eight months. Prices peaked in May at £273,427. Experts attributed the slowdown in December to Budget-related uncertainty, which weakened buyer confidence. Despite muted price growth, affordability improved as earnings growth outpaced house prices and mortgage rates eased, boosting first-time buyer activity above its long-term average. Nationwide forecasts that house price growth will be between 2% and 4% in 2026, with the increase driven by gradual improvements in affordability and modest interest rate declines.

City AM (03/01/2026)   Financial Times (03/01/2026)   The Standard (03/01/2026)   The Times (03/01/2026)  

Prime London housing remained resilient in 2025, with more than £400m spent on the capital’s ten most expensive homes, accounting for around 40% of all £15m-plus sales. Despite higher taxes and tighter scrutiny, ultra-wealthy global buyers continued to dominate super-prime areas including Belgravia, Mayfair, Knightsbridge and Regent’s Park. The standout deal was the £139m sale of The Holme in Regent’s Park, the UK’s second-most expensive home ever. Overall, the data highlights enduring international demand for London’s prime residential market. 

Daily Mail (07/01/2026)  

UK construction output has now fallen for a full year, raising concerns about the government’s ability to meet housing targets. A monthly survey by S&P Global shows activity remained below the growth threshold for a twelfth consecutive month, with December among the weakest readings since 2020. Housing construction saw some of the sharpest declines, hit by weak confidence, higher costs and tax pressures. Analysts note that uncertainty around property taxes delayed investment decisions, while job losses and a lack of new orders persisted. Although business optimism has edged up, economists expect housing starts to remain below historical levels and fall short of government targets.

City AM (08/01/2026)   Daily Mail (08/01/2026)   The Daily Telegraph (08/01/2026)   The Guardian (08/01/2026)  

Nearly 70,000 UK households will face significant increases in their mortgage repayments this year as their low fixed-rate deals expire. According to Nous, these borrowers secured five-year deals at rates below 2% during the pandemic. Now, they will remortgage at an average rate of 4.9%, leading to an average monthly increase of £321. Greg Marsh, chief executive of Nous, warned: "Tens of thousands of homeowners . . . are in for an unpleasant start to 2026." 

Daily Mail (07/01/2026)  

The housing market is anticipated to rebound strongly in 2026 as buyers take advantage of falling mortgage rates. Experts predict a recovery driven by first-time buyers, although the upper end of the market could face challenges. A recent base rate cut to 3.75% may boost market sentiment, with UK Finance predicting around 1.20m house sales in 2026 and 2027. Regional disparities will persist, with northern regions forecasted to see outperforming growth compared to the south. House prices are expected to rise modestly, influenced by factors such as wage growth and inflation. Quality in newly built homes remains a priority amid rising demand, emphasising the need for standards and customer care in the industry.

Daily Mail   London Evening Standard   The I