UK House Prices Slow After Record Highs – Market Outlook 2025

UK House Prices Show Slower Growth: What This Means for Buyers and Sellers

Recent reports indicate that while some price indexes have shown record or near-record average prices during certain months, the broader trend is one of slowing price growth.

This aligns with data from both Halifax and Nationwide, which highlight a cooling pace of increases.

Growth Slowing After Reaching High Levels

Some indexes have reported near-record average prices in late 2025, but these increases have been accompanied by a noticeable slowdown in month-to-month growth.

This slowdown suggests the market is adjusting to new affordability realities rather than experiencing a sustained surge.

Why the Slowdown Is Occurring

Market analysts point to several key factors:

• Mortgage rates, while easing, remain higher than during the pandemic years
• Household budgets remain under pressure
• Supply has improved in certain regions, easing competition
• Demand patterns are shifting, particularly away from higher-priced markets

As a result, rapid price rises have given way to more measured conditions.

Investment Trends Are Shifting Regionally

Investors increasingly focus on markets offering better yields rather than pure capital appreciation. This has led to increased interest in:

Regional cities

Strong rental-demand areas

More affordable markets with long-term growth potential

Future Outlook

Most forecasts anticipate modest and uneven growth rather than dramatic increases.

Much depends on inflation, wage growth, and how lenders adjust mortgage pricing over the coming months.

Source:

City A.M. – UK house prices hit record high but overall growth slows https://www.cityam.com/house-prices-hit-record-high-but-overall-growth-slows/