UK house prices stagnate in November – and 3 regions see drop | Personal Finance | Finance

House prices remained stagnant month-on-month in November, with a modest increase of around £138 in the average property value pushing it to a new record high, according to one index.

Halifax reported no change in the average house price for November, following a 0.5% monthly increase in October. In monetary terms, the average house price saw a slight rise of around £138 month-on-month, bringing the average house price to a record-breaking £299,892. Year-on-year growth in property values sharply decelerated to 0.7%, down from 1.9% in October. Amanda Bryden, head of mortgages at Halifax, said: “Average house prices were broadly unchanged in November, edging up by £138 compared to October, with the typical property now costing £299,892.

“Annual growth has slowed to 0.7%, the weakest rate since March 2024, though this largely reflects the base effect of much stronger price growth this time last year.

“This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to stamp duty back in spring and some uncertainty ahead of the autumn Budget, property values have remained steady.

“While slower growth may disappoint some existing homeowners, it’s welcome news for first-time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015.

“Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.

“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”

Northern Ireland continues to outperform other regions in the UK, with average property prices increasing by 8.9% over the past year, according to Halifax. The report indicates that the average home in Northern Ireland is priced at £220,716.

Scotland saw annual house price growth of 3.7% in November, bringing the average property value to £216,781. In Wales, average property values increased by 1.9% year-on-year, standing at £229,430.

In England, the North West experienced the highest annual growth rate, with property prices rising by 3.2% annually to £245,070.

However, some areas of southern England witnessed price drops, with annual decreases of 1.0% recorded in London and Eastern England, and a 0.3% annual fall in the South East.

London remains the priciest part of the UK, boasting an average property price of £539,766.

Jason Tebb, president of OnTheMarket, commented on the housing market’s “considerable resilience” in 2025, but added: “National average figures conceal significant regional differences, with the market performing stronger in the north than the more expensive south, where affordability is more of an issue.”

Iain McKenzie, chief executive of The Guild of Property Professionals, said: “What continues to shape conditions on the ground is the higher supply of homes on the market compared to last year. Buyers have more choice than they’ve had in years, and that increase in supply is naturally keeping a lid on price growth in the short-term.”

Karen Noye, a mortgage expert at wealth manager Quilter, said: “The dust has now settled post-Budget, giving borrowers a clearer view of what the early months of 2026 may look like.

“Affordability remains the biggest hurdle. Inflation has eased and there is growing expectation of a first rate cut in December, but mortgage pricing is still sensitive to shifts in swap rates (which lenders use to price mortgages) and global pressures.

“Fixed rates have dipped, yet progress is gradual and high living costs continue to limit how far borrowing power can stretch, particularly for first-time buyers.

“Mortgage activity shows a market that wants to move but is still cautious. Lenders are competing harder at lower loan-to-value bands, while higher LTV (loan-to-value) deals remain expensive.

“Remortgagers rolling off old fixed rates are opting for shorter terms as they wait to see how borrowing costs evolve in 2026.”

In the Budget, it was announced that from April 2028, the Government will introduce a high-value council tax surcharge in England on homes valued over £2 million.

The surcharge will be divided into four price bands, starting at £2,500 per year for properties valued over £2 million and increasing to £7,500 for properties worth more than £5 million.

Ms Noye said: “The new mansion tax was only announced last week, so it has had no bearing on this month’s figures and its wider impact is likely to be limited.”

She added, “It may, however, create pressure for some older homeowners who are asset-rich but not cash-rich and now need to factor in an annual charge.”

Here are the average house prices and the annual change, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data):.

• East Midlands, £246,002, 1.4%.
• Eastern England, £334,795, minus 0.1%.
• London, £539,766, minus 1.0%.
• North East, £180,939, 2.9%.
• North West, £245,070, 3.2%.
• Northern Ireland, £220,716, 8.9%.
• Scotland, £216,781, 3.7%.
• South East, £388,207, minus 0.3%.
• South West, £306,271, 0.3%.
• Wales, £229,430, 1.9%.
• West Midlands, £261,420, 1.3%.
• Yorkshire and the Humber, £216,159, 1.8%.