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.”
Iain McKenzie, CEO of The Guild of Property Professionals: “The ONS figures underline the growing resilience of the UK housing market. A 2.5% rise in average prices to £271,000 shows that, despite uncertainty in the run-up to the Autumn Budget, serious, needs-based buyers continued to move forward. The uplift in annual growth from October reflects a market that is quietly strengthening rather than overheating.
“Regional performance also highlights where momentum is building, with Scotland leading the way at 4.5% growth, while England and Wales continue to post steady, sustainable gains. This points to confidence returning at different speeds across the UK, but importantly, confidence is returning nonetheless.
“Looking ahead, the market has begun 2026 on far firmer ground. Interest rates are one of the biggest positives. The Bank of England’s decision to cut the Bank Rate to 3.75%, combined with mortgage rates now at their lowest levels since before 2025, is materially improving affordability. With two- and five-year fixed rates now well below where they were this time last year, buyers are feeling more able to act.
“Alongside more stable borrowing costs, rising incomes and the widest choice of homes in a decade, conditions for buyers have improved. Demand to move remains strong, particularly from those who delayed plans over the past two years due to uncertainty. As confidence rebuilds and transactions pick up, we expect a stronger-than-usual start to 2026 and a brighter outlook for price growth as the year progresses.”
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.”
Nick Leeming, chairman of Jackson-Stops: “November’s modest house price growth points to a market in a holding pattern towards the end of 2025, rather than one gaining momentum. Buyers, sellers and the wider industry held their breath amid weeks of speculation ahead of the Autumn Budget, yet underlying market fundamentals kept house prices propped up.
Once the Chancellor set out her fiscal plans, much-needed clarity helped to steady confidence after a prolonged period of uncertainty. While it was not a catalyst for immediate change, certainty matters, and that reassurance is now beginning to filter through to buyer behaviour, setting the market up for a stronger-than-usual start to the new year.
Looking ahead, while upcoming council tax changes are likely to prompt some households to reassess affordability and running costs, particularly at the upper end of the market, they are unlikely to derail activity. Instead, continued recalibration is expected as buyers and sellers adjust expectations. With the Bank of England expected to make further base rate cuts over the coming year, buying power should gradually improve, further supporting market activity into 2026.”
Ben Finnie, property sales director at Gilson Gray: “The latest HPI points to a steady and reassuring picture for the UK property market. A modest month-on-month rise of 0.3%, coupled with annual growth of 2.5%, underlines the fact that prices continue to move in a positive direction without any signs of overheating.
“An average UK house price of £271,188 reflects a market that is adjusting at a measured pace, supported by improving economic conditions and a more predictable lending environment. We’re also seeing buyers remain confident and well-organised, particularly those motivated by long-term lifestyle needs rather than short-term sentiment.
“With mortgage rates showing greater stability, households are increasingly able to plan ahead, reinforcing that the market is resilient and likely to maintain this balanced trajectory as we move through the first quarter of 2026.”
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