UK Housing Market Update 2025: Prices, Trends & Regional Changes

The UK housing market continues to adjust after several years of unusual volatility.

While the national picture shows slower house-price growth, recent reports from major lenders such as Halifax and Nationwide indicate that the direction of the market now depends heavily on location, property type and local economic conditions.

Price Growth Has Slowed, but Stabilisation Is Emerging

Halifax’s latest index shows annual price growth softening, with some regions experiencing slight monthly declines, while others remain stable or show marginal increases.

Nationwide data similarly suggests modest month-to-month movement.

Taken together, the market appears to be entering a period of stabilisation rather than sharp rises or falls.

Mortgage Conditions Showing Gradual Improvement

Several lenders have begun reducing fixed-rate mortgage products in recent months. While rates remain higher than pre-2022 levels, this easing has helped restore some confidence among first-time buyers and movers who had paused decisions during previous rate spikes.

Affordability remains challenging in many areas, but the stabilisation of borrowing costs is an important shift.

Regional Variation Remains Wide

Recent market reports highlight significant differences across the UK:

• London & South East: Slight declines or flat growth in some areas due to stretched affordability
• Midlands & North: More stable conditions, with some areas showing small increases
• Scotland & Northern Ireland: Certain regions continue to demonstrate relative resilience

It is important to note that trends vary on a local level, even within the same region, depending on supply, demand and price bracket.

Outlook for 2026

Most analysts expect modest, uneven growth across the UK rather than a uniform rise. The trajectory will largely depend on interest-rate movements, wage growth and broader economic conditions.

Sources:

Savills – UK Housing Market Update https://www.savills.co.uk/research_articles/229130/382441-0

The Guardian – UK first-time buyers best positioned in a decade https://www.theguardian.com/business/2025/dec/05/uk-first-time-buyers-best-position-buy-property-decade-data-shows

MoneyWeek – Halifax house price growth update https://moneyweek.com/investments/house-prices/halifax-house-price-growth-derailed-by-autumn-budget