UK house prices edged lower in December, bringing the average property value to its lowest point in six months, according to the latest Halifax house price index.
Data from Halifax shows that average property prices fell by 0.6% over the month, a decline of £1,789, leaving the typical UK home valued at £297,755. This marked the lowest average price recorded since June 2025. On an annual basis, house price growth slowed to 0.3%, down from 0.6% in November, pointing to a cooling market rather than a sharp downturn.
Amanda Bryden, Head of Mortgages at Halifax, noted that while December delivered a softer close to the year, overall market activity across 2025 remained resilient and broadly in line with pre-pandemic norms. She suggested that the monthly fall was likely influenced by uncertainty towards the end of the year, which may now begin to ease as market conditions stabilise.
Looking ahead, Ms Bryden highlighted several factors that could support the housing market into 2026. Mortgage rates have begun to fall following the most recent base rate cut by the Bank of England, and lenders are offering a wider range of options for buyers with higher loan-to-value requirements. Despite ongoing pressures on affordability, including slower wage growth and a flattening jobs market, Halifax expects house prices to rise modestly this year, with growth forecast in the range of 1% to 3%.
Regional trends continue to vary significantly. Northern Ireland remained the strongest-performing area, recording annual house price growth of 7.5%. In contrast, London saw prices decline by 1.3% over the same period, reflecting differing demand and affordability dynamics across the UK.
Karen Noye, a mortgage expert at wealth manager Quilter, said that December typically lacks urgency in the housing market, with many buyers and sellers postponing decisions until the new year. She added that the late timing of the budget contributed to subdued activity, with households choosing to pause rather than commit before Christmas. Against this backdrop, the monthly price fall pointed to reduced momentum rather than a fundamental weakening of the market.
There are also early signs that delayed demand may be re-emerging. Property portal Rightmove reported its busiest ever Boxing Day for website visits in December 2025. The most frequently listed homes were smaller properties with two bedrooms or fewer, a segment often associated with first-time buyers, suggesting renewed interest at the lower end of the market.
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