Average UK house prices edged up in November, rebounding slightly after a small dip in October, according to the Office for National Statistics.
Prices rose 0.3% month-on-month to £271,000, marking a 2.5% increase over the year, as the market steadied following months of uncertainty over stamp duty changes and Budget-related policy shifts.
Rents also continued to rise, with average UK private rents up 4% in the 12 months to December 2025.
Regionally, the North East led house price growth in England, with prices climbing 6.8% year-on-year to November, compared with 5.2% in the year to October. London remained the weakest performer, with prices down 1.2% over the same period, though the decline was smaller than the 2.6% drop recorded in the 12 months to October.
Industry reaction:
Jason Tebb, president of OnTheMarket: “Property values continued to rise on an annual basis in November, with the average price £6,000 higher than a year ago. In the run up to the delayed Autumn Budget, caution and price sensitivity prevailed as some would-be movers paused amid concern about potential property tax changes.
“However, since the Budget, our own property sentiment report reveals that over half of sellers and renters across the country are pressing ahead and even accelerating their plans, a positive sign for market activity this year.
“The average UK house price conceals notable regional differences, with values in London contracting on a yearly basis. Increased supply, low buyer demand and stretched affordability in the capital where values can be significantly higher than elsewhere in the country are all playing their part, along with higher living costs.
“With inflation rising to 3.4 per cent in the year to December, there will be concerns that this will slow the pace of future Bank of England base rate reductions. Six base-rate cuts in the past 18 months have had a huge impact on the market, boosting buyer and seller confidence and activity, although affordability remains a challenge.”
Jeremy Leaf, north London estate agent: “The most comprehensive of all the property reports, this one from the ONS – though a little dated – confirms what we’re seeing on the ground. Talk of a possible market correction was premature. Activity is holding up better than expected, supported by falling mortgage rates with the overwhelming majority of transactions completing despite some hard bargaining.
“Worries about what was likely to be included in the Budget inevitably prompted many to press the pause rather than the stop button. The relief is now palpable.
“Looking forward, the amount of property for sale – particularly flats – and likely slower pace of base-rate reductions, particularly given the latest inflation news, as well as some employment nervousness, means no significant price rises are likely for the time being at least.”
Tomer Aboody, director of specialist lender MT Finance: “With the Budget now out of the way, the uncertainty and hesitancy is also over and buyers are ready to make their move. Despite a lot of negative speculation beforehand, the Budget left the property market mostly unscathed.
“With sellers coming to the market and buyers who have delayed moves now ready to proceed, as well as lower mortgage rates, the scene looks set for a bounce.
“With the money markets expecting another base rate cut from 3.75 per cent, although perhaps not at the February meeting of the Bank of England given the latest inflation figures, the improved affordability this will bring when it comes will encourage movement – and the market needs that encouragement.”
“In practical terms, we’re seeing this play out very clearly. A small house we’ve had on the market since September, which previously attracted no interest, has received three offers this week alone – one at asking price– with the buyer indicating they’re prepared to increase. We also have additional viewings booked. Similarly, a flat that had seen very little activity since September has suddenly had multiple viewings and second viewings arranged.
“For buyers, this means the market is becoming more competitive again, and hesitation can cost you. Those who are decisive and prepared are currently best placed to secure the right property.”
Read the orginal article: https://propertyindustryeye.com/house-prices-record-modest-year-on-year-rise-as-industry-weighs-in/?utm_source=rss&utm_medium=rss&utm_campaign=house-prices-record-modest-year-on-year-rise-as-industry-weighs-in
