House prices crept up in 2025

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)