UK house prices rose by 2.4% annually in December 2025, with a monthly decline of 0.7%, according to official data from the Office for National Statistics. England experienced the slowest growth at 1.7%, while Wales and Scotland saw increases of 5% and 4.9%, respectively. The London market struggled, with prices dropping 1% due to affordability issues and increased supply. The typical property value in December 2025 was £270,000, while the average London house price remains the highest at £551,000. UK rental prices also rose, averaging £1,367 per month, but annual growth slowed, particularly in London. Despite recent sluggishness, the property market shows signs of recovery entering 2026, though affordability remains a concern for many buyers.